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The revenue recognition basic principle is the idea that income ought to be regarded only in the event the company has completed the earnings course of action.
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In combination with becoming the biggest individual bankruptcy reorganization in American heritage, the Enron scandal without doubt is the biggest audit failure.[sixty five] It included a financial scandal of Enron Company and their auditors Arthur Andersen, which was unveiled in late 2001.
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A regular that simplifies and enhances how a not-for-financial gain Group presents info in its financial statements.
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