Is controlling earnings by utilizing discretionary accounting techniques, disingenuous and/or unethical?

From a credit perspective, I look for consistent accounting practices and policies. If there are deviations which could come from management changes, I start to worry.

As to banks, they are highly regulated. The call report process should prevent releases from the allowances for doubtful accounts without detailed justification.

Estimates fully disclosed and allowable under GAAP are commonplace. Whenever in doubt, I check with our CPA firm and beforehand.

I had a boss who routinely tweaked certain monthly estimates, such as legal fees and reserve for bad debts, to manage monthly P&L versus budget and prior year. This was to maximize his and the other executives' performance against MBO goals. Naturally, those of us who had to post the related journal entries, prepare the monthly financial statements and write the analytical review did not participate in the upside, as our MBO goals were written differently.

Linda sums it up in a nutshell when she says "consistent accounting practices" I believe the entire financial reporting process from close to issuance of audited financials is designed to manage volatility. Material misrepresentation is very different from managing earnings, so every company is probably guilty to some degree. From personal experience, many are probably guilty of over-conservatism. I tend to over-reserve and to defer earnings if there are any grey areas. I'm not currently at a public company, but is over-conservatism keeping a stock price compressed and thereby not rewarding shareholders properly?