OFTEN PAINT FAKES
Response to the following problem:
An art dealer bought a canvas signed "Picasso" and traveled all the way to Cannes to discover whether it was genuine. Picasso was working in his studio. He cast a single look at the canvas and said, "It's a fake."
A few months later, the dealer bought another canvas signed "Picasso." Again he traveled to Cannes, and again Picasso, after a single glance, grunted: "It's a fake."
But cher maitre," expostulated the dealer, "it so happens that I saw you with my own eyes working on this very picture several years ago."
Picasso shrugged: "I often paint fakes."
Required
a. Assume that the accounting report was prepared using generally accepted accounting principles. Does this imply that the report is exactly accurate? Discuss.
b. In your opinion, do accountants paint fakes? Discuss.