Michael A. Pearson, CFE, CMA, CPA

Earnings Management: When Does Juggling the Numbers Become Fraud?

• January 1, 2000

Have you heard the one about the company that needed to hire a chief corporate accountant? In the last interview session each finalist was given financial information and asked, “What are the net earnings?” All applicants but one dutifully computed the net earnings but none of them got the job. The candidate who landed the position answered the question by replying, “What do you want your net earnings to be?”

Written By: Pervaiz Alam, Ph.D., CPA, Michael A. Pearson, CFE, CMA, CPA, Stephen D. Makar, Ph.D., CPA

• • Career and Professional Development

Earnings Management Revisited: Further Suggestions in the Wake of Corporate Meltdowns

• March 1, 2004

When reported results are intentionally misstated, earnings management becomes fraud. Corporate scandals including Enron, and WorldCom, and these entities' external auditor, Arthur Andersen, are instructive on such accounting and business abuses. They also point to the critical need for further involvement of fraud examiners in assuring the verity of published financial information.

Written By: Stephen D. Makar, Ph.D., CPA, Pervaiz Alam, Ph.D., CPA, Michael A. Pearson, CFE, CMA, CPA

• • Accounting and Auditing

SAS 99: Another Implement for the Fraud Examiner’s Toolbox

• May 1, 2003

Another Implement for the Fraud Examiner’s Toolbox SAS 99 not only requires auditors to be reasonably sure that financial statements are free of material misstatements, whether caused by error or fraud, but it gives them focused and clarified guidance on meeting their responsibilities to uncover fraud.

Written By: Michael A. Pearson, CFE, CMA, CPA, Daniel R. Brickner, Ph.D., CPA

• • Accounting and Auditing