For this discussion, you will work on a case on Earnings Management found in an Accounting and Auditing Enforcement Release $($AAER$)$ of the Securities and Exchange Commission. Select a publicly traded company for which an AAER was published on the SEC website in the past five years.

After selecting your case, review any AAERs published relating to this company as well as information available on the company$$s Investor Relations website to evaluate the following items:

Identify specific facts of the case that caused SEC investigation.

Identify how the SEC handled the complaints.

How did the company react to the investigation?

Were any sanctions imposed?

What step did the company take to rectify the situation?

Discussion Resources

Accounting and Auditing Enforcement Releases