signed the certification of financial statements as being accurate and reliable, as required under section 302 of Sarbanes-Oxley. However, various investigations from SEC and lawsuits from investors failed to prove just that.Just before the restatement announcement then Chief Financial Officer, Elyse Douglas, had declined to relocate with the company to Florida for personal reasons. Many believed this was the first sign of trouble for the company. The accounting issues were discovered when a new Chief Financial Officer was brought in. Immediately after the announcement of accounting issues the stock price dropped 24% according to trades on the NYSE. The impact of the errors mounted to $43 million dollars for the entire three year period which made it immaterial per quarter in a multibillion dollar international company.The company reacted to their financial reporting issues by replacing the leadership and executive team with strong experts. The decision was made in order to prevent future errors, improve practices, ensure compliance and implement strict internal controls. My recommendations to the company would be to keep a close eye on the areas in that caused their 3
ACC 573 Assignment #1: Financial Restatement & Ethicsissues. Changing management was a positive step forward when situations like these occur, however, the issues also need to be addressed at the lowest level.
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- Spring '16
- Balance Sheet, U.S. Securities and Exchange Commission, Chief financial officer