00:01
So we consider this example, showing the lines here, to the enemies.
00:31
As an example, suppose you have a few financial analysis reviewing a company's financial statement, you come across a claim made by a colleague that the company's financial performance has improved significantly due to a new accounting method they implemented.
00:51
So, first thing would be overlooking the analysis.
01:09
Due to the time constraint or a desire to see a predictive result, you might accept the claim without critically examining the details of the new accounting method or the change it brought to the financial statement.
01:25
Number 2, confirmation bias.
01:36
If you want to believe that the company's performance has improved, you might be more likely to accept the claim without thoroughly investigating it.
01:48
So, there are some investigating steps.
02:01
Number 1, methodology understanding.
02:19
Gain a deep understanding of the new accounting method.
02:23
How does it work and what are its implications for the financial reporting assessment.
02:35
Analyze how the new accounting method affects various financial metrics.
02:43
Are there any unusual changes in revenue expense or profitability...