Planning and Staffing week 6-2January 12, 2021
Answers these questionsJanuary 12, 2021
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.