The Role of CFOs in Material Accounting Manipulations
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CFOs are likely to become involved in material accounting manipulations because they succumb to CEO pressure, not because they seek immediate financial benefit. This report investigates the factors that may lead a CFO to engage in accounting manipulations. The analysis draws upon instances of corporate fraud and a comprehensive sample of Accounting and Auditing Enforcement Releases issued by the U.S. Securities and Exchange Commission from 1982 to 2005.