Corporate Earnings: Who Can You Trust?

Auditors, analysts, and earnings reports are supposed to help you. Too often they don't

With financial markets in Tokyo, Seoul, and Moscow imploding, investors are flocking to the U.S., where they know certain bedrock principles still apply. Here, companies adhere to universally accepted accounting standards. Auditors scour the books to keep management honest. Regulators ensure that "sunshine" is applied through regular disclosure. And analysts parse the numbers on behalf of investors for information that will make them money.

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