1- Management Responsibilities and Internal Controls” Please respond to the following:

• From the e-Activity, analyze management’s role in the fraud and make recommendations as to how management could have prevented the fraud. Support your recommendation with examples.
• Imagine that you are a member of the management team and are having financial difficulties. You need money for a short period of time and plan to pay it back. Develop a scheme that is likely to be undetected by internal controls. Make recommendations that would prevent you from carrying out your scheme. Support your scheme and recommendations with examples.

2-“External Auditors and Governing Bodies” Please respond to the following:

• You are an auditor assigned to XYZ’s Company’s annual audit. The company has not reported an item because management’s assertion is that the item is immaterial. You may agree or disagree. Construct an argument that supports whether you agree or disagree with management’s assertion. Support your answer with examples.
• The Securities and Exchange Commission (SEC) is a key governing body when it comes to financial statements. Evaluate the effectiveness of the SEC over financial statement reporting and take a position as to its effectiveness. Construct an argument that supports your position that the SEC is not effective or is effective in regulating financial reporting. Support your answer with examples.
• 3–Financial Statement Fraud and Bribery” Please respond to the following:
  • Evaluate at least three methods that are used to commit financial statement fraud. Give your opinion of which method is mostly likely to be detected by external auditors. Provide support for your rationale.
  • From the e-Activity, explain the type of transactions the fraudster(s) was involved in, the organization the fraudster worked in, and how the bribery was detected.