Managers continually use innovative ways to reach their objectives. The main issue is whether managers can influence earning reporting to achieve investors' perception on the company's performance. Construct a short essay (less than 10 pages) discussing the ways that managers use to manage earnings. In the essay you have to (1) differentiate between accounts manipulation, earnings management, income smoothing, creative accounting, and abnormal accruals, (2) discuss the perceptions on earnings management and the incentives that promote the occurrence of earnings manipulation and income smoothing and (3) emphasize the role that plays the auditing process and other regulated type of enforcement on controlling earnings manipulation.
You have to support your discussion with adequate references (author(s), year) and examples.