1. In its report prepared for audit committees and other stakeholders in December 2014, Our Commitment to Audit Quality, EY acknowledges that recent PCAOB findings indicate the need for improving audits of internal control over financial reporting (ICFR), increasing the focus on controls over the use of electronic audit evidence (EAE), scoping multi-location audits, auditing managements estimates, and performing substantive analytical procedures. In its opening letter in the report, the firm states: At EY, the delivery of quality audits is central to our purpose, values, management, processesOur reputation is based on providing quality audit services objectively, independently, and with appropriate skepticism. Given the 50 percent audit deficiency rate cited by the PCAOB in its inspection of EY audits, would you conclude that the firm failed in its role to adequately protect the public interest?

2. Dennis just got hired after not working for two years following his reporting of financial statement fraud by his previous employer. Dennis was treated as an outcast and ultimately fired after the company trumped up some unsubstantiated claims of poor performance. Dennis fought the dismissal in court as wrongful termination but lost. It was two difficult years during which time his marriage broke up. In order to get hired for the new job, Dennis felt compelled to shade the truth about why he left the job. Here is what Dennis told the recruiter when asked whether he had left the company because of any differences:

I didnt feel as though there was a good growth path and that it didnt make sense to stay somewhere that wasnt going to work out for me.

Did Dennis do the right thing? Explain.