Coming to Terms with Short-Termism: Implications for Fraud
Date: Thursday, July 7, 2016
Time: 1:00 p.m.– 2:30 p.m. (EDT)
Goals for long-term value creation for a company’s investors may conflict with incentives that are introduced by short-term pressures, such as analysts’ expectations, internal profit targets, and compensation bonuses tied to short-term performance metrics. Emphasis on short-term results can increase the risk of financial reporting fraud if there isn’t alignment between the short-term goals and the long-term strategy. Organizations may not fully appreciate the long-term impact that the need to meet or beat short-term expectations—from the Street, or even from a supervisor or business unit leader—has on the actions that employees take. And employees may not fully realize the implications to the long-term strategy of the decisions they make when they give in to those pressures.
Learn how audit committees, financial executives, and internal auditors can help to improve the connection and identify ways to mitigate the risks of short-termism, and how the external auditors factor those risks into their audit planning and scoping. Our panel of experts will discuss what successful companies do to reinforce the alignment between potentially conflicting goals, and provide actionable recommendations that each supply chain member can implement in their organizations.
We encourage all of the key players in the financial reporting supply chain—audit committees, financial executives, internal auditors, and external auditors—as well as compliance professionals, to register for this informative program.
The Conference Board Governance Center
Senior Managing Director
Brock Capital Group
Executive Consulting Group
Center for Audit Quality