The accounting scandals at companies such as Enron, World Com and Tyco involved the use of...

 

Transcribed Image Text:

The accounting scandals at companies such as Enron, World Com and Tyco involved the use of inside information by top management to sell shares owned at a relatively favourable price compared to the future price. Many corporate managers, auditors and analysts are participants in the earnings management. Describe any two motivation for earnings management and advice whether it is ethical for companies to involve in earnings management. The accounting scandals at companies such as Enron, World Com and Tyco involved the use of inside information by top management to sell shares owned at a relatively favourable price compared to the future price. Many corporate managers, auditors and analysts are participants in the earnings management. Describe any two motivation for earnings management and advice whether it is ethical for companies to involve in earnings management.

Answer rating: 100% (QA)

There are many different reasons for managing profits but the two basic ones are to either sm... View the full answer