Financial Statement Restatement and Ethics
Search the Internet for a company with a financial restatement from within the last 12 months. Use the research you conducted to complete Assignment 1 according to the instructions below.
Write a three to four (3-4) page paper in which you:
1.Evaluate the contributing factors to the financial statement restatement. Explain how management could have avoided the issue and restatement. ** Thoroughly assessed the factors that contributed to the financial statement, restatement. Thoroughly suggested how the restatement may have been avoided during the initial reporting process. **
2.Assess the impact of the restatement on the companys stock price by comparing the stock price immediately before the announcement of the restatement and immediately after the restatement announcement. Explain whether the change in stock price was justified. Support your position. ** Thoroughly explained the impact to the companys stock price when the restatement was released and to future earnings forecast, indicating whether you believe the impact to the stock price was justified. **
3.Explain managements role in the restatement, including any potential ethical violations based on the requirements of the Sarbanes-Oxley Act. Offer suggestions to management to assist them in avoiding similar problems in the future. Provide support for your recommendations. ** Thoroughly evaluated the restatement in terms of managements ethical violations according to the requirements of the Sarbanes-Oxley Act, providing recommendations to management on how to avoid these problems in the future. Thoroughly provided support for your recommendations. **
4.Use at least two (3) quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources.
The specific course learning outcomes associated with this assignment are:
Evaluate the role of asset valuations, liability valuations, and cash flow activities in assessing the quality of earnings.
Assess the framework and reporting requirements of the Securities and Exchange Commission (SEC), U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and the Sarbanes-Oxley Act for publicly traded companies.
