... sale without disclosing the discounts on the books - Numerous accounts of "channel stuffing" by contingent sales, "early buy incentives", and "bill and hold" practices In 1997, Sunbeam's income was overstated by 50%. preceding the SEC investigation, external auditors, Arthur Anderson, found Sunbeam had guaranteed a 5% profit margin to clients on the re-sale inventory ... Evaluation of Solutions and Recommendations Sunbeam Corporation and its Board of Directors clearly lacked internal policies to avoid such a scandal. The Board of Directors should have policies for hiring executives that ...

• Word Count: 1336
• Approx Pages: 5
• Has Bibliography
• Grade Level: High School