Learn how compensation systems result in behavior that puts CPAs at risk.
Course ID: GZDCS
Defective Compensation Systems: When Bonuses and Incentives Go Bad
- At the conclusion attendees will be able to recognize the operational, financial and audit risks caused by defective compensation systems.
Using real cases, learn how several typical compensation systems cause employees and management to behave in a manner that has an adverse effect on the entity’s best interest, resulting in control, financial reporting and auditing risks. .Government risk – Policing for profit .Industry risk – Trucking companies .Company risk – Domino’s .Regulatory risk – First Energy Davis-Bessie Power Plant .Healthcare – Discharging patients to maximize profits .Nonprofits – Rewards based on outputs vs. inputs .Schools – Perverse incentives compel teachers to cheat .BONUS – Maximize profits – How to transform goal incongruence into goal congruence
DESIGNED FORCPAs, clients, internal auditors, controllers, CFOs, Executives, board members, Business Owners, Attorneys
FIELD OF STUDY