Arthur Andersen: Questionable Accounting Practices
Question 1. Describe the legal and ethical issues surrounding Andersen's auditing of companies accused of accounting improprieties.
Question 2. What evidence is there that Andersen's corporate culture contributed to its downfall?
Question 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
Question 1. How did pressures for financial performance contribute to Sunbeam's culture where quarterly sales were manipulated to influence investors?
Question 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?
Question 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?