This is from a case Called

Waste Management, Inc

Manipulating Accounting Estimates

and here is the required questions

REQUIRED

1. [1] Review Waste Managements Consolidated Balance Sheet as of December 31, 1996. Identify accounts whose balances were likely based on significant management estimation techniques. Describe the reasons why estimates were required for each of the accounts identified.

1. [4] The Waste Management fraud primarily centered on inappropriate estimates of salvage values and useful lives for property and equipment. Describe techniques Andersen auditors could have used to assess the reasonableness of those estimates used to create Waste Managements financial statements.

1. [6] Several of the Waste Management accounting personnel were formerly employed by the companys auditor, Arthur Andersen. What are the risks associated with allowing former auditors to work for a client in key accounting positions? Research Section 206 of the SarbanesOxley Act of 2002 and provide a brief summary of the restrictions related to the ability of a public company to hire accounting personnel who were formerly employed by the companys audit firm.