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Arthur Andersen Questionable Accounting Practices

by | Dec 1, 2023 | Posted Questions

Arthur Andersen Questionable Accounting Practices 

1. Describe the legal and ethical issues surrounding
Andersen’s auditing of companies accused of accounting improprieties.

2. What evidence is there that Andersen’s corporate culture
contributed to its downfall?

3. How can the provisions of the Sarbanes-Oxley Act help
minimize the likelihood of auditors failing to identify accounting irregularities?



Sunbeam Corporation: “Chainsaw Al”and Greed

1. How did pressures for financial performance contribute to
Sunbeam’s culture where quarterly sales were manipulated to influence
investors?

2. What were Dunlap’s contributions to the financial and
public relations embarrassments at Sunbeam that caused investors and the public to question
Sunbeam’s 
integrity?

3. Identify ethical issues that Dunlap’s management team may
have created by adopting a short-run focus on financial performance. What lessons
could be learned 
from the outcome?

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