EARNINGS MANAGEMENT

MASTERING CORPORATE GOVERNANCE: WHEN EARNINGS MANAGEMENT BECOMES COOKING THE BOOKS

There is often a blurred line between appropriate and inappropriate accounting techniques, but the audit committee must attempt to clearly distinguish which is which.

The guiding principle of the audit committee is shifting from a focus on technical accounting procedures to determining whether disclosures in the financial reports present a true and fair view of the entity’s affairs. Companies often face a great deal of pressure to meet the earnings forecasts they present to investors and analysts or the estimates these analysts make. Executives of companies in this situation often resort to using a range of ‘earnings ­management’ techniques to help them ‘make the numbers’. These techniques will often exploit loopholes in generally accepted accounting principles (GAAP) to manipulate the company’s income.

It is up to the audit committee members to identify whether earnings management, accounting -estimates and other judgments are legitimate or are designed to blur the true financial position of the company.

Source: Adapted from Ira Millstein, ‘When earnings management becomes cooking the books’, The Financial Times.83

QUESTIONS

1.      What earnings management techniques are outlined in the above article?

2.      What role can the audit committee play in detecting and/or limiting earnings management?

3.      What relationship does the audit committee have with the external auditors in ensuring earnings management is within acceptable limits?

4.      Evidence shows that earnings management has often been as practiced for a considerable period of time. Motivation for this practice is driven by management wishing to achieve outcomes that are favourable to them and or favourable to the entity. Outline the five methods that entities can use to manage earnings. Discuss the circumstances in which entities are likely to use each method. For each method provide a relevant example.

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support functions

What are some key business support functions for leadership, information technology and marketing management?

support functions

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Global Market

Your task is to write a global marketing report (approx. 2-3 pages) identifying the market entry strategy that you will recommend for a company to enter into the Global Market. You will identify the product(s) that the company will first enter into the Global Market – special attention will be given to the 4Ps of the product(s) that you recommended

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industry analysis

1- Explain the purpose of industry analysis.

2- Identify the five primary industry types and the opportunities they offer.

3- Explain the purpose of a competitor analysis and a competitive analysis grid.

4- Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers.

5- Define a brand and explain why it is important to an entrepreneurial firm’s marketing efforts.

6- Identify and explain the 4Ps of marketing activities (product, price, promotion, and place) used by entrepreneurial firms.

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e-marketing strategy

The marketing manager of CNP Banking Corporation has approached you to develop an e-marketing strategy for a new product they wish to launch next year.

CNP Banking Corporation was established in 1908 and has a strong reputation in the financial industry. The majority of their business comes from the corporate sector. 22 years ago they expanded into personal banking and have had a great deal of success. Their key clients are based in the 35 to 50 year age group.

The global financial crisis affected the corporate sector of their business considerably, and without the personal banking sector, CNP would not have remained solvent.

With the appointment of a new CEO last year, some major changes have occurred within the organisation. There is now a new focus on personal banking. The CEO has created a new business plan which aims to increase personal banking customers.

Next year’s business plan has set the target to increase customer numbers in the age bracket of 14 – 18-year-olds by 11%. The organisational goal is to create more customers for life. Research has shown that the majority of adults have remained with the same banking corporation they opened their first account with. CNP’s aim is to market to consumers in the 14 – 18-year-old age bracket. This age group is generally starting part-time work for the first time and requiring their first bank account.

The new product is the ‘GenYsaver’ account. The product is aimed at under 18-year-olds, to encourage saving by offering bonus interest. Features of the ‘GenYsaver’ account:

  • Just make one deposit and no withdrawals each calendar month and you’ll earn bonus interest on top of your standard interest

  • There are no monthly account fee and no withdrawal fees when you use a CNP ATM

  • Online banking features

  • 24-hour banking

  • Statements are emailed every six months

Q1:Identify the electronic marketing tools you would recommend for the marketing of this product and explain your recommendations

Q2:Nominate the consumer behaviour of the customer CNP Banking Corporation is hoping to appeal to and explain what opportunities exist for electronic marketing.

Q3Develop a comprehensive e-marketing strategy for the ‘GenYsaver’ account

Q4:Evaluate the current website marketing strategy.

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payback method

Explain the payback method, net present value method, and the internal rate of return. How are they similar and how are they different?
Remember to use citations and references as appropriate. Your post must follow APA sixth edition style and formatting guideline

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value chain

Operations are composed of many different processes to fulfill customer needs and requirements. The value chain is a higher-level view of those processes from a customer view. In order to meet customer requirements like quality and cycle time, organizations need to ​​identify the value chain, subprocesses, and measures needed to meet the customer needs.
Consider a process from an organization you are familiar with. In 500 750 words, complete the following:

-​Identify the steps in the high-level value chain required to fulfill the customer requirements from beginning to end.
-From the high-level value chain steps, identify the operational subprocesses.
-Identify those metrics that the organization should monitor at both the value chain level and subprocess level.
-​​Based upon the process you described above, if an organization needs to improve a process within the value chain, how would you analyze the process and metrics to know that the process is not working
-Explain what steps the organization could take based upon your analysis for value chain improvement.

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self-leadership styles

Final Reflection ScenarioPurpose:Instructions:

This reflection will help you think through self-leadership styles and apply how you would use them to support your career in a real-life scenario.

Imagine that director has asked to complete some self-assessments in preparation for the upcoming employee performance evaluation. have an opportunity to submit a short reflection directed to them regarding your performance.

  1. Complete the following Self Assessments as requested by your director:

references:

  • Assessment: What’s Your Leadership Style? https://hbr.org/2015/06/assessment-whats-your-leadership-style

  • Assessment: Authentic Leadership Self-Assessment Questionnaire https://engage.stmary.edu/learn/pluginfile.php/826749/mod_book/chapter/98157/W3_Authentic_Leadership_Self_Asessment.pdf

  • Assessment: The Leadership Motivation Assessment – Discover How Motivated You Are to Lead https://www.mindtools.com/pages/article/newLDR_01.htm

  1. As part of your reflection, the director has asked you to consider the following:

  • Were there any surprises?

  • How will you use this information and other self-tools to further develop as a leader?

  • What are some identified areas of strength and opportunities? What is your personal plan for improvement?

  • What are your thoughts regarding staff feedback inclusive of 360- degree type evaluative assessments?

  • Is there a role model whose leadership behaviors that you wish to emulate?

  • Similarly, what is the value of serving as a mentor?

  • What are those characteristics that are most attractive and particularly noteworthy relative to success and achievement?

  • Thinking further about this week’s course objectives, are there certain areas of strength and opportunity? What is your strategy to enhance performance?

  • How can personal leadership reflections and development enhance how leaders prepare for and undertake organizational growth and success plans?

Describe the reflection addressed to the supervisor (the director) based on your self-assessment activities and the questions above.

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three approaches to HRD outlook

Which of the three approaches to HRD outlook can create the most optimal conditions to motivate employees within a diverse global organization to perform better? What are some global issues in addressing performance appraisals to improve global companies’ performance? How would you address these challenges?

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Decision Making

Decision Making and Conflict Resolution. What process do you want to adopt for decision-making? How will you make decisions as a team? By majority? Consensus? If “it depends,” then what does it depend on? What will happen if members of your team abstain from participation, or are unable to reach an acceptable agreement? How will you handle disagreements/conflicts when they arise? Will you establish norms that govern everyone’s behavior? What norms would be beneficial? Why? How will you enforce them?

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