Expert answer:Assignment 1
Solved by verified expert:Read the Ethics Cases listed below and answer the questions associated with each.Ethics Case 1: Parmalat – Europe’s Enron Read the Ethics Case, Parmalat – Europe’s Enron, on pp. 405-411 of your text and answer the following questions (approximately one paragraph per answer):What audit procedures could have been performed that would have revealed the fraud during an audit? Comment on risk assessment in your response.How has the fraud impacted (or will it impact in the future) the two audit firms involved? What punishments were issued to date for all parties involved?In your opinion, should bankruptcy projection models be a common tool used by auditors and creditors?Ethics Case 2: Toyota’s Recall Problems Read the Ethics Case, Toyota’s Recall Problems, on pp. 531–534 of your text and answer the following questions (approximately one paragraph per answer):Did Toyota handle the recall situation ethically? Explain your answer.What are some changes you would make to Toyota’s approach to crisis management? Why?In 2014, Toyota faced significant sanctions in this case. Summarize those sanctions and comment on whether you believe they were minimal, adequate, or excessive.
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