Topic Responses

Part 1  “What are some possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?

Part 2  The SEC is trying to get companies to notify the investment community more quickly when a “material change” will affect their forthcoming financial results. In what sense might a financial manager be seen as “more ethical” if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipate?

Part 3 How can a manager influence the budgeting process and ensuing budgetary numbers in unethical ways? Are there ways to identify and control this type of behavior?