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 revenue recognition

07/04/2021 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,

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:

Smart Accountants
Quick N Quality
Accounting & Finance Specialist
Top Grade Essay
Write My Coursework
Financial Analyst
Writer Writer Name Offer Chat
Smart Accountants

ONLINE

Smart Accountants

I will cover all the points which you have mentioned in your project details.

$31 Chat With Writer
Quick N Quality

ONLINE

Quick N Quality

I have read and understood all your initial requirements, and I am very professional in this task.

$27 Chat With Writer
Accounting & Finance Specialist

ONLINE

Accounting & Finance Specialist

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

$28 Chat With Writer
Top Grade Essay

ONLINE

Top Grade Essay

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

$47 Chat With Writer
Write My Coursework

ONLINE

Write My Coursework

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$19 Chat With Writer
Financial Analyst

ONLINE

Financial Analyst

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

$48 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

71 fahrenheit to celsius - There is no unmarked woman answers - Website content brief template - Slavery race and the making of american literature - Body found at nottoway high school - Metal recycling sunshine coast - Ethics 101 what every leader needs to know pdf - Types of primary research - List three provisions in the corporate charter that affect takeovers - Victor g feros town planning consultants - The most famous work of egyptian literature is - Hollybush primary school derry - Cage analysis india - Financial management time value of money questions and answers - Words ending in j - What is the conjugate acid of hpo4 - Dictum definition to kill a mockingbird - Maths algebra - Cronus eating son painting - Feasibility study sample for small business - Vector lab report physics - Wawa no cidal movie - What does cate often call her twin sister math worksheet - Greg doucette protein ice cream - Module 06 Case Study - Air filtration system ppt - Post-Tania - Seal row incline bench - Informal powers of the governor include - Routine Message Exercise - Lionel holiday tradition express troubleshooting - 21 why is jem so upset about the knothole - Mission - Joint typhoon warning center - Buffer solution ph 10 sds - HR_GLOB_FIN (U2) - I sing because you are good - Community Resources for Older Individuals - Brewer and treyens research method - Order 2315655: Target Corp. (Accounting) - A future-oriented job analysis - Written assignment - Discussion: Discuss and Debate - Osha test questions and answers - How to write an introduction for an oral presentation - Tata water plus manufacturing franchise - Week 3 Discussion - Frankenstein creative writing assignment - How to count to 20 in french song - Allmand light tower parts manual - New Work 09/22 - Importance of ritz carlton wow stories - The case for contamination appiah summary - Organisational power and politics - Reply to my peers - 2 responses Aug 06 - Walden nurs 6630 final exam - Translink day ticket price - Discussion 150 words - Differentiator with product lifecycle focus - You want custom embroidered hats UK? - Marriage customs in the middle ages - Non-endorsed components of training packages - Aftab iqbal family background - White and mcburney goals of science - Stanley primary school ardrossan - Emerson ups liebert gxt mt+ manual - Sharon giammatteo cause of death - 340 discussion (4) - Response - The other civil war howard zinn - Ieee 802 lan man standards committee - Video Assingment - Underwriters laboratories surge protector - Romeo and juliet act 2 study guide answers - I am looking to find someone soon to do all my competitive rounds for the Capsim course. - Smallest positive solution maple - How has globalization affected american popular music - Cambridge ielts 4 test 2 writing task 1 answer - Mla essay template word - Write a comparative analysis essay - Charles lackey operates a bakery in idaho falls idaho - Vic uni st albans campus map - Anglo american plc in south africa case study summary - Week 1 Discussion - Quest university of texas - Complex in exponential form - Bus 377 discussion question - Rewrite the paragraph above correcting any fragments - Elena ¡hola, daniel! ¿qué tal? - Human anatomy and physiology laboratory manual 12th edition answer key - Brave new world individuality - Vcaa music group performance list - Case Study Analysis: New Kind Of Structure - My aqua dragons have not hatched - Epidermal layer containing the oldest cells - Www hartnell edu canvas - Worksafe smart move certificate - Physics - The rushmore group llc