Review Case 7-7 Sunbeam Corporation
Respond to the following:
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.
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.
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