|Author :||Jamie Pratt, Emeritus Professor of Accounting, Speaker, Author|
|CPE Credits :||3.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Course Type:||Video - NASBA QAS - Text - NASBA Registry|
|Primary Subject-Field Of Study:||
Behavioral Ethics - Behavioral Ethics for Course Id 1913
This 3.0 credit 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? We begin by creating an ethical framework based on the professional code of ethics. We then cover the what, why, how and when of earnings management behavior, describing and illustrating the variety of ways in which managers use their discretion in operating, investing, financing, and reporting decisions to influence the financial reports. In the vast majority of these cases, we rely on real-world examples, taken from publicly-available financial statements that received unqualified audit opinions. For the various categories of earnings management, we consider how they can be evaluated within the ethical framework we established in the beginning of the course. The result is an informed and thoughtful approach to assessing whether a given earnings management practice is consistent with professional ethics, a valuable tool whether you are an external auditor reviewing a set of statements, a preparer of the statements, or an outsider attempting to determine the usefulness of the statements.
|Usage Rank :||0|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||QAS Self Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||18-Nov-2021|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
Video - NASBA QAS - Text - NASBA Registry - 1913
|Keywords :||Behavioral Ethics, Ethics, Earnings, Management, Video, cpe, cpa, online course|
|Learning Objectives :||
Course Learning ObjectivesAfter completing this course the user will be able to:
2. Define earnings management and link it to the elements of the code of ethics.
3. Explain why earnings management is practiced.
4. List and describe the two basic forms of earnings management: real and reporting.
5. Identify common situations when earnings management is practiced.
|Course Contents :||
Chapter 1 - Ethics and Earnings Management
Chapter 1 Review Questions