The Securities and Exchange Commission
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The title of the business is Beazer Homes USA. The U.S. Securities and Exchange Commission (SEC) discovered them at fault of “manipulating its profits by concealing cash in certain accounts”. The SEC discovered discrepancies in its quarterly and yearly profits on declarations from 2000 to 2007. The business conceived reserves for land inventory and building charges that produced in the business being adept to control profits that they were to report to the shareholders. They fraudulently misstated their snare income. The SEC discovered them guilty. Beazer never accepted their guilt. However, the business cooperated with the investigation; applied new controls over its practices from the accounting perspective to double-check it does not occur again; and they furthermore filed modified economic declarations for 1998 through the second quarter of 2007 to correctly recognize the companys profits and losses. I would suggest that they should apply internal quality control checks of the books as well as charter external auditors to verify the economic statements. This would double-check that there are not only internal eyes on the articles but furthermore external reconsiders as well.

The business understated its net earnings over a five year time span by 42 million dollars. Then in 2006 they overstated their net earnings by more than 1.2 million dollars. This method proceeded into the starting of 2007. By doing this they were smoothing over peaks and valleys so that they could meet their analysts and stakeholders expectations. However, as an outcome of the fraud, the stakeholders and clients lost belief in the builder. This impaired their status and they lost ground with their competitors. They have taken steps to minimize the damage by amending the matters and announcing legitimate economic reports. Communication is the key to overwhelming this set back.

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Title Of The Business And Land Inventory. (April 3, 2021). Retrieved from