Discuss property the importance of earnings management, and the
role that ethics plays in its...

Question

Discuss property the importance of earnings management, and the
role that ethics plays in its reporting. What policies and internal
procedures would you consider being the minimum necessary to
instill confidence in earnings reports? How and why would you
supplement those?

S · Accepted Answer

Accounting
Importance of Earning Management
The importance of earnings management, and the role that ethics plays in its reporting:
In management, earning management is the use of accounting techniques to produce a financial report that shows a positive assessment of a company’s operations and financial position of the firm. The earning management reports a more stable income monthly, quarterly and yearly. The term “Ethics” is a branch of philosophy or the study of what is morally good and what is bad. It covers the concept of good behaviour and bad behaviour. It can bring accountability, justice, attention, respect and good citizenship.

Discuss property the importance of earnings management, and the role that ethics plays in its reporting. What policies and internal procedures would you consider being the minimum necessary to instill...

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