Earnings manipulation key to accounting success

Earnings manipulation key to accounting success

The most successful corporate accountants are those most willing to manage earnings, study finds

A WILLINGNESS to manipulate company earnings is key to success in corporate accounting, a study by the American Accounting Association has suggested.

According to the paper, presented at the association’s annual meeting this week, the most successful corporate accountants are those most willing to manage earnings, and are hired and promoted for that reason.

“Executive recruitment professionals indicate that the job candidate whose personality characteristics signal an aversion to earnings management is likely to be screened out before even being considered by prospective employers,” the study said.

When presented a choice between two candidates for a senior corporate accounting position who were similar in background and credentials, 87.5% of accounting and finance executives chose the candidate who was clearly more congenial to earnings management. Seasoned recruiting professionals rated that candidate’s fitness for the job at 81% and the fitness of the more ethically upright rival at only 35%.

“We couldn’t help but be surprised by the overwhelming consensus in favour of a candidate whom study participants considered inferior in just about every aspect of management except the ability to remove roadblocks to reporting a profit,” said Scott Jackson of the University of South Carolina’s Darla Moore School of Business, who conducted the study with colleagues Ling Harris and Joel Owens.

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

2m

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

6m

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

4w

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

1m

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource