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What can be done to monitor and control Earnings Management?Greed andmeeting goals seem to be key motives for Earnings Management．EamingsManagement is performed by Accelerating and Delaying Revenue/Expenses，manipulating R&D and other income accounts，using Off-balance sheet accountingand Pro-Forma Earnings Statements．Many Accounting Boards and GovernmentBodies have tried to tackle the issue by implementing tougher laws and adding newguidelines．Past research papers have revealed that there are large incentives formanagement to perform Earnings Management，but the greater knowledge on thesubject，the greater the deterrence．US-based WorldCom and China-based KelonElectric Co were two of the biggest companies that were caught committing EarningsManagement in their respective countries．This paper will give policy suggestions thatshould be implemented and suggestions on how tO improve and avoid this problem．