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This study focuses on the study of tool practitioners and regulators may find useful. The large body of literature on the topic of earnings management provides discussions of total accruals, discretionary total accruals, and current accruals. The literature also offers discussions of the development and study of models to determine the level of earnings management given that cash flow from operations (CFO) and net income differ.

The Development Of The Miller Ratio (MR): A Tool To Detect For The Possibility Of Earnings Management (EM)