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They use audit committe in companys to control mangers and board of directors
Also audit committe limit window dressing
Analysis of financial statements is affected from the limitation of window dressing as companies hide Some vital information or show items at incorrect value to portray better profitability and financial Position of the business, for example the company may overvalue closing stock to show higher profits.
there is " F A R " It means Financial Analysis Ratio "
it's used for measuring the analysis of the financial statements
like
1 - activity ratio
2 - debt service ratio
3 - financial leverage ratio
4 - liquidity ratio
5 - profitability ratio
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