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Continuous Monitoring and its Dysfunctional Effects

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Uploaded by on Mar 18, 2008

In this excerpt, James Hunton, a Professor of Accounting at Bentley College is giving thought on the implications of Continuous Monitoring. In particular, if Continuous Monitoring is implemented by corporations how will employee incentive systems (e.g. Stock Options) be impacted? To answer this question, Professor James Hunton went on to discuss his experimental scenario that tested the different effects that a periodic and continuous monitoring system may have on managements' incentives.

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