Earnings management is one of the most important ethical issues in corporate governance. Under GAAP, managers have opportunities to manage earnings. Earnings management involves selecting GAAP methods for some objective of management. Earnings management takes advantage of the latitude that GAAP rules allow in the timing and amount of revenues and expenses. Engage in a conversation with your classmates about earnings management. Consider the following questions. What parties are affected by earnings management? What are some of the pros and cons of earnings management