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Expert: Don Sadler - 5/1/2006


Question
Don,

Are there three methods that audit clients can use to put a favorable “spin” on their reported operating results without changing their “bottom line” or net income. Thanks in advance i am having trouble with this

Zagui

Answer
Zagui,

You cannot change the numbers but you may be able to influence how they are interpreted.  This can be done two ways:

1)   By making comments or explanations that address unfavorable numbers - something that lets the reader know that the numbers are (were) an anomaly and not representative of normal operating conditions.  In other words, the reader should not expect similar performance under other circumstances.

2)  By making forward looking statements that are optimistic so as to lead the reader to expecting much better performance in the future.


Both of these methods do not change the facts but introduce some small degree of “spin”.

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Don Sadler

Expertise

I can answer regarding Internal Auditing - especially operational audits, audit management, and how to revitalize a dysfunctional audit department. Also give advice to "auditees" on how to deal with auditors.

I DO NOT ANSWER HOMEWORK OR CLASS PROJECT QUESTIONS. For those answers, I suggest you scan previously asked questions and search on your favorite search engine.

I ALSO DO NOT ANSWER TAX QUESTIONS AS THIS IS NOT WITHIN MY EXPERTISE. NOTE: I am not an accounting expert although i will try to help if I can... ask at your own risk.

Experience

I have worked in the public and private business management arena with experience in OMB, Resource Management, Internal Auditing and consulting. I am a former President of the Inland Empire Chapter Institute of Internal Auditors, previously held Director positions in the Orange County Information Systems Audit and Control Association and the Northern Telecom International User's Association. I am a Certified Fraud Examiner and a Certified Information Systems Auditor.

Organizations
Institute of Internal Auditors, Association of Certified Fraud Examiners, and Information Systems Audit and Control Association (ISACA)

Education/Credentials
MBA, CISA, CFE

Founder and Principal of Applied INTEGRITY Management Consulting Group

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