In July 2015, investigators established that Toshiba, a 140-year-old pillar of the Japanese business community, had inflated earnings by at least $1.2 billion during the period from 2008 through 2014. The investigation, triggered by an inside tip sent to the Securities and Exchange Surveillance Commission, resulted in the resignations of the corporate president and his two predecessors. In the probe into massive accounting irregularities that followed, investigators found that the period in question included a dysfunctional internal auditing method, a corporate culture and incentive system that required infeasible performance goals, and irregular accounting practices.

In a Word document, write an analysis of this case in which you do the following:

• Discuss the internal control weaknesses demonstrated by each of these findingsand how they can be linked to the Elements of Fraud.
• Suggest steps or revised internal controls that Toshiba should take to reduce the opportunities for fraud.
• What were the financial statement effects of this fraud?
• Did it result in the misstatement of financial statements? If so, which financial statements were misstated.
• Discuss the ways the corporate culture of Toshiba contributed to the symptoms of fraud rather than to the prevention of fraud. As part of your discussion, offer ideas on how the company should proceed with empowering its employees, who are in the best position to detect fraud, and transforming the company's culture.