1. From Case 5, discuss the role of the audit committee and its responsibilities. Determine whether the responsibility to hire and fire audit managers should have prevented the firing of the chief of internal auditing by Microsoft management for reporting fraudulent activity. Support your position. 2. Compare the existing internal control environment at Microsoft to managements responsibility for designing effective internal controls outlined in the textbook, and identify the deficiencies that existed. Speculate on what types of internal controls could have been designed to detect the accounting irregularities, and provide at least two reasons why the internal controls that were in place at Microsoft were not effective in detecting the accounting errors. Provide specific examples. 3. From http://www.aicpa.org/_catalogs/masterpage/Search.aspx?S=internal+control+over+fianncial+reporting., research management's responsibility for internal controls, and determine whether the Securities and Exchange Commission (SEC) should have levied more severe sanctions on Microsoft's management team for the accounting errors discovered. Speculate on the main reasons why Microsofts managers did not deny or affirm guilt for their accounting errors. Support your position. 4. Discuss the importance of senior management in setting the tone at the top for honesty and integrity within a company. Identify at least two consequences of management not establishing a code of ethics, and describe the impact on the internal control environment. Provide examples.

Please review the attachment to answer the questions. This is NOT a paper. At minimum a paragraph is sufficient to answer as long as it addresses the question.

1. From Case 5, discuss the role of the audit committee and its responsibilities. Determine whether the responsibility to hire and fire audit managers should have prevented the firing of the chief of internal auditing by Microsoft management for reporting fraudulent activity. Support your position.




2. Compare the existing internal control environment at Microsoft to managements responsibility for designing effective internal controls outlined in the textbook, and identify the deficiencies that existed. Speculate on what types of internal controls could have been designed to detect the accounting irregularities, and provide at least two reasons why the internal controls that were in place at Microsoft were not effective in detecting the accounting errors. Provide specific examples.




3. From http://www.aicpa.org/_catalogs/masterpage/Search.aspx?S=internal+control+over+fianncial+reporting., research management's responsibility for internal controls, and determine whether the Securities and Exchange Commission (SEC) should have levied more severe sanctions on Microsoft's management team for the accounting errors discovered. Speculate on the main reasons why Microsofts managers did not deny or affirm guilt for their accounting errors. Support your position.




4. Discuss the importance of senior management in setting the tone at the top for honesty and integrity within a company. Identify at least two consequences of management not establishing a code of ethics, and describe the impact on the internal control environment. Provide examples.