What are the possible incentives for managers and directors

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Question

If the financial statements of a company are misstated, whom do you think the courts and regulatory authorities will hold responsible? What are the possible incentives for managers and directors of companies to take this risk? How might the executive compensation plans that tie bonuses to accounting earnings motivate such unethical conduct? List and discuss three (3) ideas of yours to prevent or reduce such selfish behaviour (please feel free to be creative with your response but please ensure relevance by justifying your response).

Reference no: EM13486862

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