This article discusses a new study that appeared in the American Accounting Association Journal, The Accounting Review, to determine whether the presence of accounting expertise among top company managers, as well as its absence, can compromise financial reporting. (The Dark Side of Accounting Expertise, CFO.com). The study revealed that executives backgrounds as partners or managers in audit firms can substantially increase the present likelihood of financial misstatements (The Dark Side of Accounting Expertise, CFO.com). Executives with audit and accounting expertise can materially misrepresent the financial statements with significant adjustments in order to guarantee higher levels of compensation while also knowing how to keep those adjustments off the auditors radar. The study also found that executives accounting competence increases the risk of material misstatement when combined with compensation-based incentives to misreport. (The Dark Side of Accounting Expertise, CFO.com). Traditionally, auditors would reduce audit risk knowing the executives in charge of the financial statements had extensive and significant financial accounting and audit experience. Have the external auditors been duped all this time?

After reading the article, "The Dark Side of Accounting Expertise " by David McCann, answer the following questions:

1. Do you feel it is important for senior executives to lead organizations with solid experience and knowledge in accounting and auditing? Would the Board of Directors be accountable when establishing performance incentives?
2. Do you feel that the financial accounting and audit expertise and background of executives align the interests of management with those of shareholders? Explain.
3. Do you feel there is a correlation within the non-GAAP and GAAP performance measurement tools as a form of misstatement opportunities? Should there be a balanced approach? Should there be other benchmarks other than financial results centered metrics to measure performance?