Transcript of Cooking the Books - Why
manipulation of nancial statements
science
Showing the best view
'ebt holders
Actual 1rots
Smoothed prots
To 2eep in line with industry8 competitors
To avoid violation of debt covenants
To get better credit ratings
Share price related
1rot related 9over a minimum level and up to a maximum
amount:
1rot share arrangement such as lm companies
%ncentives driven by management compensation
"inancial %nterests
=uality and level of disclosure provided
7igh >uality
)overnance >uality 6 board characteristics Audit >uality
#ompany
characteristics %nstitutional
manipulation of nancial statements
Seminar Wor2 #omplete the exercise 3'enny and Ayr5 in the
assignments section of studynet&
Ensure you submit this prior to next wee2s seminar
There is an exercise and a >uestion 9answer to the written
element no more than -.+ words: