This 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.

Learning Objectives
  • Discover and describe the major elements of the accounting professional code of ethics.
  • Discover and define earnings management and link it to the elements of the code of ethics.
  • Explore and explain why earnings management is practiced.
  • Identify and list and describe the two basic forms of earnings management: real and reporting.
  • Identify common situations when earnings management is practiced.
Last updated/reviewed: August 21, 2023

Included In Certifications

This course is included in the following Certification Programs:

9 CoursesFinancial Reporting and Analysis Certification

  1. Introduction to the Financial Statements and the Environment of Financial Reporting
  2. Preparing Financial Statements
  3. Reading and Analyzing Financial Statements
  4. Time Value of Money - Concepts and Applications
  5. Classification, Debt and Equity
  6. Current Assets and Asset Valuation
  7. Equity Investments and Long-lived Assets
  8. Earnings Management
  9. Ethics and Earnings Management
1 Review (21 ratings)

Reviews

5
Anonymous Author
Great course. When I downloaded the slide deck it was a little hard to use. 500+ slides
Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  An Overview to Ethics and Earnings management2:48
  Learning Objectives and Ethical Framework16:47
  Earning Management Practices16:01
  Earning Management Practices Cont'd12:22
  Attributes of Real Earnings Management21:11
  Earning Management Practice Examples22:23
  Earning management Common Strategies8:55
  Conclusion3:10
CONTINUOUS PLAY
  Ethics and Earnings Management1:43:47
SUPPORTING MATERIAL
  Slides: Ethics and Earnings ManagementPDF
  Ethics and Earnings Management Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam