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You are a senior manager at Entergy Corporation. All senior managers and the board of directors are scheduled to meet next week to discuss some questionable manipulations of earnings that were found by the outside independent auditors. The CEO has asked you to start the discussion by developing questions that should be addressed before responding to the auditors.
Required:
1. Why would the CEO be concerned about earnings management? After all, it is the auditor who attests to the fair presentation of financial reporting.
2. If the earnings management were deemed to be "abusive" and you decided to resign and blow te whistle would you have any protection? Explain.
3. Why is more likely to be involved in managing earnings: the financial or management accountant? Explain. 4. Do you believe that "managing earnings" is ethical?
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