Beyond the Numbers: Understanding Earnings Management and Its Ethical Landscape

Course Overview
This course provides an overview of earnings management techniques and their ethical implications. This course covers basics like revenue recognition timing, expense manipulation, provision adjustments, income smoothing, and cost-cutting. This course also addresses more advanced methods such as financial engineering, tax planning, big bath accounting, accounting policy changes, and round-trip transactions. Throughout this course, the ethical considerations inherent in these techniques are addressed through a series of example situations.  

Learning Objectives
•    Identify different methods of revenue recognition timing used in earnings management
•    Recognize examples of expense manipulation in financial reporting
•    Distinguish between provision and reserve manipulation techniques
•    Determine the impact of asset valuation adjustments on reported financial performance
•    Differentiate between income smoothing strategies and their effects on financial  statements
•    Identify financial engineering techniques in advanced earnings management
•    Distinguish legitimate tax planning from earnings management strategies
•    Determine the impact of big bath accounting on financial reporting
•    Differentiate permissible changes in accounting policies from manipulative adjustments
•    Recognize risks associated with round-trip transactions in earnings management

New Course 7/17/2024

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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