Assignment 1: Financial Statement Restatement and Ethics
Due Week 3 and worth 130 points
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 (3-4) 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.
Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and similar Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment 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.
Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric: