1. How serious were Stephen Richards actions? Give a reason or reasons for your opinion. If Computer Associates achieved the same financial results through GAAP flexibility, does your answer to change?

2. Step back and consider managements incentives and choices. What was the motivation to manage earnings?

3. Suppose you were placed in Stephen Richards position at Computer Associates and were under pressure to extend the fiscal quarter. How could you have handled the situation differently? If so, what might be the expected consequences for you personally and for the company?

4. What was the board's responsibility in this matter? How should it have acted before and after the events unfolded?