Business Commons^™

Uncontrolled Earnings Management-Financial Enhancement Or Downfall?, Kevin A. Costello

Honors Capstone Projects - All

Since the turn of the century it has become undeniably apparent that many corporations, regardless of their size, have resorted to falsifying financial records in an attempt to mask the true financial health of the company. The reasons for such actions vary from attempts to shore up investor confidence to ensuring perks for corporate executives. These scandalous acts are not a characteristic of a certain type of business. They have occurred across a wide array of businesses including, but not limited to, power and energy, insurance, and telecommunications.

The most common form of record falsification comes in the form of …