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Public accounting firms are being implored to assess a

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Public accounting firms are being implored to assess a company"s reported earnings per share relative to the market expectation of earnings per share (e.g., consensus analysts" forecast) when establishing the level of misstatement that is considered acceptable (the materiality threshold). Explain why a 1 cent misstatement can be insignificant for one firm but significant to another otherwise comparable firm.

Reference no: EM13573511

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