Ethics and Earnings Management
SKU: 06-286-01-CPE
Credit Hours: 3
CPE Category: Ethics: Non Technical
Delivery Method: Video
Instructor: Jamie Pratt
Course Description:
This course tackles the question: Is it ethical to “manage” the earnings number - that is, to use legitimate discretion in the preparation of the financial statements to manage the numbers in a way that serves the interests of the manager independent of whether it serves the interest of the firm’s owners.
After completing the course you should be able to:
- Describe the major elements of the accounting professional code of ethics.
- Define earnings management and link it to the elements of the code of ethics.
- Explain why earnings management is practiced.
- List and describe the two basic forms of earnings management: real and reporting.
- Identify common situations when earnings management is practiced.