** I have added screenshots from the text--the questions have been answered on here previously so i had just listed them originally--thanks for your help.

Lehman Brothers: Subprime Accounting?

4.Assume that Lehman's accounting for the Repo 105 transactions met the requirements of GAAP. However, also assume that the entire purpose of the transaction was to intentionally manage the amount of debt shown on the balance sheet. Do you agree with Lehman Brothers and EY that the financial statements are presented fairly in that situation?

7.EY did not modify the 2007 audit opinion of Lehman Brothers for going-concern uncertainty, yet the entity filed for bankruptcy less than a year later. In your opinion, is this indicative of an audit failure? Why?