ACC 675. Compensation, Incentives and Strategic Control. 2 Credit Hours.

Internal control is the process by which owners influence manager's of organization to implement the organization's strategies. They key idea is that different organizations typically have different strategies which in turn require different control systems for effective implementation. Internal control involves both formal systems and informal processes. Accounting 675 will begin by describing the formal aspects of management control such as the design of responsibility centers, budgets and standards, performance reports and management compensation. We will then explore the economic and financial reporting consequences (perhaps unintended) of various performance measurement mechanisms. In particular, we will focus on issues of short-termism, earnings, management, and attendant control failures that plague Corporate America today . Finally, we will discuss some of the regulatory changes brought about in recent times (e.g., Sarbanes Oxley) to address the apparent widespread control system failures.
Prerequisite: ACC 301. Or ACC 634.
Components: LEC.
Grading: GRD.
Typically Offered: Fall.