discussion

Some of the items on the balance sheet are based on estimated information. Consider management’s responsibility when it comes to the use of estimates (e.g., net realizable value of receivables, valuation of inventories, accumulated depreciation, etc).

1. Describe the incentives management has to misrepresent estimates.

2. With the core value of integrity in mind, discuss controls and procedures companies can put in place to prevent misrepresentation of these estimates. 

**Please use 2 APA Citation.