LP3 Assignment: Topic Responses

Directions: Your answers to the following questions are considered formal responses and should be written in APA format with in-text citations and a reference page. Each response should be 200-350 words.You may include all responses in one paper but clearly separate and label your responses.

Part 1
Re-read Focus on Practice Free Cash Flow at Cisco Systems. Answer the question posed in the article, “What are some possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?

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Part 2
Read the Ethical Problem (P4-21). Answer the question posed in the problem.
The SEC is trying to get companies to notify the investment community more quickly when a “material change” will affect their forthcoming financial results. In what sense might a financial manager be seen as “more ethical” if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipate?

Part 3
Respond to the questions in the statement below:
How can a manager influence the budgeting process and ensuing budgetary numbers in unethical ways? Are there ways to identify and control this type of behavior?

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