Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Sunbeam bill and hold

20/04/2021 Client: muhammad11 Deadline: 2 Day

thi79492_case2-5_067-070.qxd 12/19/07 2:11 AM Page 67 Confirming Pages 2.5 Case Sunbeam: Due Professional Care Synopsis In April 1996 Sunbeam named Albert J. Dunlap as its CEO and chairman. Formerly with Scott Paper Co., Dunlap was known as a turnaround specialist and was even nicknamed “Chainsaw Al” because of the cost-cutting measures he typically employed. Almost immediately Dunlap began replacing nearly all of the upper management team and led the company into an aggressive corporate restructuring that included the elimination of half of its 12,000 employees and 87 percent of Sunbeam’s products. Unfortunately, in May 1998 Sunbeam disappointed investors with its announcement that it had earned a worse-than-expected loss of $44.6 million in the first quarter of 1998.1 CEO and Chairman Dunlap was fired in June 1998. In October 1998 Sunbeam announced that it would need to restate its financial statements for 1996, 1997, and 1998.2 Arthur Andersen Sunbeam’s auditor, Arthur Andersen, came under fire for having issued an unqualified opinion on the company’s financial statements for both 1996 and 1997. In January 1999 a class action lawsuit alleging violation of the federal securities laws was filed in the U.S. District Court for the Southern District of Florida against Sunbeam, Arthur Andersen, and Sunbeam executives. The suit reached the settlement stage in 2001. As part of the settlement, Andersen agreed to pay $110 million.3 1 Robert Frank and Joann S. Lublin. “Dunlap’s Ax Falls—6,000 Times—at Sunbeam,” The Wall Street Journal, November 13, 1996, p. B1. 2 GAO-03-138, Appendix XVII “Sunbeam Corporation,” p. 201. 3 Nicole Harris, “Andersen to Pay $110 Million to Settle Sunbeam Accounting-Fraud Lawsuit,” The Wall Street Journal, May 2, 2001, p. B11. 67 thi79492_case2-5_067-070.qxd 12/19/07 2:11 AM Page 68 Confirming Pages 68 Section Two Ethics and Professional Responsibility Cases Not surprisingly, Phillip Harlow, the engagement partner in charge of the Sunbeam audit during this period, also found himself under fire on an individual basis for his work on the audits. The Securities and Exchange Commission (SEC) barred Harlow from serving as a public accountant for three years after it found that Harlow failed to exercise due professional care in auditing Sunbeam’s financial statements.4 The 1996 Audit Through the 1996 audit, Andersen partner Phillip Harlow allegedly became aware of several accounting practices that failed to comply with GAAP. In particular, he allegedly knew about Sunbeam’s improper restructuring costs, excessive litigation reserves, and an excessive cooperative advertising figure. Improper Restructuring Costs During the 1996 audit, Harlow allegedly identified $18.7 million in items within Sunbeam’s restructuring reserve that were improperly classified as restructuring costs because they benefited Sunbeam’s future operations. Harlow proposed that the company reverse the improper accounting entries, but management rejected his proposed adjustments for these entries. Harlow relented on his demand after deciding that the items were immaterial for the 1996 financials.5 Excessive Litigation Reserves Sunbeam also failed to comply with GAAP on a $12 million reserve recorded for a lawsuit that alleged Sunbeam’s potential obligation to cover a portion of the cleanup costs for a hazardous waste site. Management did not take appropriate steps to determine whether the amount reflected a probable and reasonable estimate of the loss, as required by GAAP. Had they done so, the reserve would not have passed either of the criteria. The SEC determined that Harlow relied on statements from Sunbeam’s general counsel and did not take additional steps to determine whether the litigation reserve level was in accordance with GAAP.6 The 1997 Audit The SEC also found that Harlow discovered several items that were not compliant with GAAP during the 1997 audit. These items related to revenue, the 4 Cassell Bryan-Low, “Deals & Deal Makers,” The Wall Street Journal, January 28, 2003, p. C5. SEC Accounting and Auditing Enforcement Release No. 1393, May 15, 2001. 6 SEC Accounting and Auditing Enforcement Release No. 1706, January 27, 2003. 5 thi79492_case2-5_067-070.qxd 12/19/07 2:11 AM Page 69 Confirming Pages Case 2.5 Sunbeam: Due Professional Care 69 restructuring reserves, and inventory, in particular. In several cases he proposed adjustments that management refused to make. In response to management’s refusal, Harlow acquiesced, however.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Academic Mentor
Essay Writing Help
Assignments Hut
Helping Hand
Top Class Engineers
Finance Professor
Writer Writer Name Offer Chat
Academic Mentor

ONLINE

Academic Mentor

Give me a chance, i will do this with my best efforts

$41 Chat With Writer
Essay Writing Help

ONLINE

Essay Writing Help

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$27 Chat With Writer
Assignments Hut

ONLINE

Assignments Hut

Give me a chance, i will do this with my best efforts

$31 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I have read your project details. I can do this within your deadline.

$25 Chat With Writer
Top Class Engineers

ONLINE

Top Class Engineers

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$17 Chat With Writer
Finance Professor

ONLINE

Finance Professor

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$36 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Cgs unit of magnetic field strength crossword - Kno3 covalent or ionic - Sample siop lesson plan - Amy cuddy presence discussion questions - Annotated Bibliography on Interstitial Cystitis - Access control procedure guide - Beagle club of south australia - Half wave and full wave rectifier experiment - What was different about new coke - Propose a nursing informatics project for your organization - Question Final - Is a sports drink a heterogeneous mixture - Dq - Marketing Assignment - Applied healthcare management - Cedric sunray wannabe - Vagisil syncope - Girl before a mirror interpretation - Implementing Change With an Interprofessional Approach Presentation - Wm wrigley jr company case analysis - Tax file number declaration form question 8 - Week 3 Discussion - You are examining a prepared slide with 40x objective - Fieldwork on prostitution in the era of aids - Sixteen year old brenda questions her parents values - Complete the equations for the following equilibria - 6 types of kingdoms - What is the difference between euthanasia and pas - Salvage the bones character analysis - Philosophy Discussion 1 - Moderate effect smartart style - Linear pair theorem example - Discussion - Strategic alignment model henderson and venkatraman 1993 - Risk Management - Translating a Scholarly Article in Your Field of Study for a Public Audience - Portable literature reading reacting writing 2016 mla update pdf - ISACs - Global student health survey - Motivation for sentiment analysis - 8 parts of speech song - Sap crm configuration guide - What does aed stand for - Ge tetra contour installation instructions - SAME DAY 0609702423 DR SAM ABORTION CLINIC IN KURUMAN - Marketing Strategies - Argument - Flowers for algernon banned - How to write a criminology report - What is rational exponent notation - The state patrol ticket processing system case study - Gst on accounting fees smsf - Power in dc circuits lab report - Marketing an introduction 13th edition pearson - Don't look back 1996 - Core ethics awareness inventory - Respond post to other classmate only need 2 paragraph - Essentials of baccalaureate education for professional nursing practice - Taking the lead lln - Week 5 assignment 3 email based on listening skills scenario - Bridgestone tg australia pty ltd - MIS Discussion 14 - Psychopathology history diagnosis and empirical foundations pdf - Describe the function of the skeletal system - Case Analysis Seven - Robert frost the death of the hired man - What are the four strategic alternatives - Cadet oer support form example - Magnesium nitrate and sodium hydroxide net ionic equation - Cortello cabernet sauvignon napa valley 2016 - Save smog city 2 from ozone answer key - The new colossus literary devices - Electron configuration valence electrons - Is steroid a carbohydrate lipid or protein - Colloidal silver ppm meter - 400 word blog project soc350 - What is the poem comin thro the rye about - How cost accounting distorts product costs - 12.2 the structure of dna answers - Essay on memory images and images of various forms off media. - Compare and contrast fairy tales from different cultures - Sef4 polar or nonpolar - Management strategies business management vce - Modern real estate practice in pennsylvania 13th edition pdf - A Focus on Congo and Peacekeeping Missions - Sap me59n no suitable purchase requisitions found - Webquest the great depression 1930s america - Bony landmarks of the body - Combined statement of income and retained earnings - 132 pitcorthie drive dunfermline - Mendel conducted his most memorable experiments on - Weekly plan that includes goals for children's learning and development - What are the results of beatrice's aptitude test - Read chapter 2 and 3 of Perspectives on Argument and complete the review questions. - Java program that simulates a traffic light - Marketing by the numbers appendix answers - First course on power electronics and drives - Wonder of dinosaurs west covina mall - Red panda food chain - How to find strain hardening exponent from a graph