Assignment: Financial Statement Restatement and Ethics
Search the Internet or Strayer databases 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 page paper in which you:
Evaluate the contributing factors to the financial statement restatement. Explain how management could have avoided the issue and restatement.
Assess the impact of the restatement on the company's 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.
Explain management's 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.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
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.