Tuesday, September 22, 2009

Helping Others Cook Their Books: It's a Recipe for Disaster


Your company's best corporate customer needs help. Earnings are down. You could help that company's revenues look rosier with a sham transaction. And, why wouldn't you? After all, it's not your company's financial statements you're sweetening. You're just bringing a little aid to the table for someone else.

With your help, that other company could stay hot in the market. Its shareholders won't suffer because of missed earnings expectations. You won't either, you think.

Should you play along? No way, says Marianne Jennings, a professor of legal and ethical studies at the W. P. Carey School of Business. Even if your own earnings are for real, you could face criminal charges for aiding another company with "creative" accounting.

See full Article.