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

Pre placement health questionnaire - Cabin pressurizer units for sale - Sissy strong fitness body guide pdf - HHS 207 - 5 - A hydrocarbon contains 85.7 carbon - Beer's law lab report answers - Case Brief 4 - Policies - Research Article - Diana dean mayo clinic - #12 - Learning lounge answers - Occupational health and safety risk register - Write a review - Audre lorde power literary analysis - How do you calculate the case mix index - New earth mining case study solution - Ivan pugh sandra good - Nursing Leadership and Management - The booth company's sales are forecasted to double from $1000 - Advanced Pathophysiology Knowledge Checks - Air track glider physics - Newspaper article lesson plan - Request to accept paper lodgement - Helena college of technology of the university of montana - At the beginning of 2013, the bradley company had the following balances in its accounts: - Home work - Week 9 - Probation period report sample - Metric system lab answer key - Zimmer implant drill sequence - Paper - Bfmcx - Housing in the industrial revolution - How to antidifferentiate on cas - Nelson mandela favorite poem invictus - Consider the integral i when answering the following questions. - Cost accounting a managerial emphasis canadian edition - Interagency collaboration and legal searches - How many gallons of gas for 600 miles - Lake pontchartrain causeway construction - 5.. - Topic: Math/Physic/Economic/Statistic Problems - Analog devices chelmsford ma - Fellowship of the rosy cross - How to build a half wave rectifier - Saguaro cactus reproduction method - What is a level 2 merit equivalent to - Today's gay youth the ugly frightening statistics - Bachelor of social work monash university - Tort law - How to read a sonnet aloud - Graduate certificate in forensic studies accounting - What features distinguish bryophytes from other plants - Counterproductive work behavior definition - Running a thousand miles for freedom discussion questions - Colonoscopy prefix and suffix - Do gummies grow in water - Bark hut tourism centre - Fresh novel original new - Difference between fluid transport and fluid power system - Principles of biomedical ethics 6th edition pdf - Bpw hub cap spanner - Sour monkey dan murphys - Donnie brasco cancer of the prick - The mask you live in discussion questions - 10 pages of write up on a given topic - Elec1111 unsw course outline - How to write in ancient latin - Biozone unit 3 and 4 answers pdf - Concepts in enterprise resource planning 3rd edition solutions - Jeffrey lu jasper jones - Cosca module 2 essay - The database medline is produced by - Ivy ledbetter lee formula for public relations - Leading Organizational Change & Cultural Transformation - Az lyrics katy perry firework - Review the primary source document listed below. Write an analysis essay of at least 250 words but no more than 500 words. In terms of page count, your analysis essay should be at least one page double spaced, but no more than two pages doubled spaced. - Why Authors Walk Away From Good? - Comparison between icp oes and aas - Cansela - Blue man group intel commercial - Behind grandma's house gary soto poem - Finance - Bioflix activity how neurons work action potential events - Single wire earth return - Find the most general antiderivative of the function - The jigsaw classroom aronson pdf - Sew what inc case study answers - Kaitlyn's ice cream shoppe financial projection - Glow in the dark widget jpg - Denormalization produces a lower normal form - Nike corporate governance issues - The first step that nutrisystem likely took in selecting a target market was ________. - Homework 2 sex linked genes - Three lines of defence immune system - Analytical research - Why does freda crews wear so much makeup - This is me passport - Actron air controller manual