ACC418 Unit 7 unethical management and financial statement fraud Questions

**There are 2 discussion questions below. Write a 250 word response for each Discussion Question. Please use 1-2 reference as well.


o Discussion Question 1: Most accountants, CEOs, and CFOs agree that it is unethical to manage earnings using accounting techniques that violate GAAP or are misleading. However, there is not a unified opinion about whether or not it’s unethical to manage earnings using management operations—for example, performing maintenance ahead of schedule in order to smooth earnings. (see… and Do you think it is ethical to smooth earnings by waiting to sell an asset at a profit or by performing an activity to recognize expenses sooner?

o Discussion Question 2: The SEC accused Xerox of committing financial statement fraud in order “to polish its reputation on Wall Street and to boost the company’s stock price” ( What ethical system do you think was being used by Xerox’s management?