You are required to briefly and succinctly complete the following questions in writing after viewing this video. You may use the following questions to test your ability to fully understand and fully comprehend the main themes of the video.

C) Mr. Lieberman (U.S. Senator) and Mr. Levitt (Former Chairman of the SEC) had different views on stock options. Specifically they discussed the topic in terms of the need to hire, attract and retain managerial talent. Briefly discuss those arguments. What is your opinion on that argument? Is there a solution to the problem?

D) In 1994 given the support of Senator Lieberman and others the US Senate passed a non-binding resolution that passed by a vote of 88-9 to require FASB to reconsider their position on the expensing of stock options. What happened as a result of this action? How did the then SEC Chairman Arthur Levitt enter into the equation? In retrospect, how did Mr. Levitt characterize his actions or inactions? What are the implications of FASB giving in to the pressure? Is it possible this can happen again? What safeguards can be employed to try to make this not repeat?

E) Discuss the fraud at Sunbeam involving the CEO Al Chainsaw Dunlop. What accounting mechanisms were abused? Discuss the Cookie Jar Reserves or Slush-Fund and how they work. What actions can be taken by an Auditor to ensure that such Reserves and Funds are not established and abused by Management? [Hint: Retroactive Restatement vs. Current and Prospective Adjustments].

F) Discuss the Fraud at Waste Management. How did management pull-off the Fraud? When did the Auditors (Arthur Andersen) discovered what happened? Discuss the long-term agreement between Andersen and Waste Management. What does this agreement constitute? How and when did the SEC find out about the scandal and the arrangement? What did the SEC do in light of this unprecedented agreement between Andersen and Waste Management? Discuss the impact of the destruction of documents in the Waste Management case and the Harbinger of things to come at Enron. Do you believe in some way that the SEC assisted in the same behavior occurring at Enron by not severely punishing Andersen