The Sunbeam Corporation is a famous case in which the CEO Al “Chainsaw” Dunlap was charged with utilizing earnings manipulation to achieve fraudulent financial goals. Find information about this case on the Internet and discuss the earnings management methods used in this case. Did the company “take a big bath” by taking a large deduction for prepaid expenses in 1996? How were accruals used to achieve management's goals?

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Financial Statement Fraud It can be considered as a falsification of the companys financ... View the full answer