Week 5 Discussion Question 1 & Week 5 Dicussion Question 2

Review Case 7-7 Sunbeam Corporation

Respond to the following: 

Yellow Group Question

Refer to the discussion of earnings management in this chapter. Consider the underlying objectives of Dunlap and evaluate whether earnings management had occurred at Sunbeam using the approaches of (1) Healy and Wahlen, (2) Dechow and Skinner, (3) Schipper, and (4) McKee. Find the appropriate professional resource to argue one of these.

Blue Group Question 

Chapter 3 addresses issues related to corporate governance and ethical management. Given the facts of the case, identify some deficiencies in ethics and corporate governance failures at Sunbeam. Provide appropriate safeguards or ethical stances from authoritative professional resources.

Orange Group Question

Describe the audit quality as it relates to the company and or specifically the EPI transaction materiality decisions. Provide expert sources for the discussion.

Green Group Question

Using standard analytical comparisons such as the ratios in the Sunbeam case to evaluate strengths and weaknesses in financial position and operating results, were these manipulated? Name instances and how these could be prevented according to appropriate expert resources. 

Analytical Requirements: Introduce the situation. Introduce and define or situate on the theme from the textbook (cite and reference). Step through the elements using facts, logical reasoning, and appropriate responses as a CPA and member of the AICPA. Conclude on the theme.

Scope: Your original response should be 350-500 words in length and meet the APA and writing standards as shown in the CWE for Masters Level II. Follow up responses should be 150 words in length (graded under participation).

Professional references (no third party): Required: Content from the textbook, AICPA Code of Professional Conduct, a professional Accountancy journal from the United States of America, Accounting technical guidance for any factual assertions. Recommended: Peer reviewed ethical websites (not professor in courses websites), Journal of Business Ethics, and related literature. For assigned Accounting firm questions, specifically used and linked resources from the firm's website.