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Could you please answer the following. Sunny Sounds Pty Ltd borrowed $50m from YB Bank. This loan is subject to an agreement that Sunny Sounds

Could you please answer the following.

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Sunny Sounds Pty Ltd borrowed $50m from YB Bank. This loan is subject to an agreement that Sunny Sounds maintains its debt to equity at 30%. Over the past two years Sunny Sounds has earned losses and expects to breach this agreement if a loss is earned in the current period. To make matters worse, Sunny Sounds has been unable to raise additional equity. No dividends were paid in the past and no dividend is expected to be declared in the current period. Note: The debt to equity ration can be expressed as: Total Liabilities Total Owners Equity 1. Explain what Sunny Sounds Pty Ltd might do fraudulently to maintain its debt to equity ratio so that it does not breach the loan agreement with YB Bank. 2. Discuss how the fraud prevention strategies can be aligned to the Fraud Triangle and Fraud Scale to fight fraud and at the same time eliminate detection and investigation costs. 3. Discuss how the fraud triangle could be applied to the CFO and provide examples of each element. 4. What pro-active steps could the Board of Sunny Sounds Pty Ltd implement to reduce the risk of fraud. Sunny Sounds Pty Ltd borrowed $50m from YB Bank. This loan is subject to an agreement that Sunny Sounds maintains its debt to equity at 30%. Over the past two years Sunny Sounds has earned losses and expects to breach this agreement if a loss is earned in the current period. To make matters worse, Sunny Sounds has been unable to raise additional equity. No dividends were paid in the past and no dividend is expected to be declared in the current period. Note: The debt to equity ration can be expressed as: Total Liabilities Total Owners Equity 1. Explain what Sunny Sounds Pty Ltd might do fraudulently to maintain its debt to equity ratio so that it does not breach the loan agreement with YB Bank. 2. Discuss how the fraud prevention strategies can be aligned to the Fraud Triangle and Fraud Scale to fight fraud and at the same time eliminate detection and investigation costs. 3. Discuss how the fraud triangle could be applied to the CFO and provide examples of each element. 4. What pro-active steps could the Board of Sunny Sounds Pty Ltd implement to reduce the risk of fraud

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