***PLEASE READ THIS FIRST AND LEAVE SUGGESTIONS*** I just need the following 2 questions answered and help...
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/666cda974b1bb_879666cda97339ba.jpg)
***PLEASE READ THIS FIRST AND LEAVE SUGGESTIONS***
I just need the following2 questionsanswered and help making the Fraud Risk Matrix for the 3rd.The answers for Questions 1 and 2 must be well-written, detailed, and must answer each question fully with examples from the case study.Please use examples and quote the case study whenever necessary.My last tutor did not elaborate enough so the answers lacked detail and felt way too short and incomplete. Please treat each subquestion for Questions 1 and 2 (a, b, c, d, etc.) as if it were its own question so you answer each with the highest level of detail instead of just a few sentences. Focus on Questions 1 and 2; I do need help with the Fraud Risk Matrix for Question 3 but it's not as important as Questions 1 and 2.
I have attached the Case Study Document (includes Questions and Exhibits) and the 2 x Supplemental Documents needed to complete the questions as well as copy and pasted Questions 1 and 2 that I need answered below:
1.Fraud risks related to Tesla?s culture, leadership, and governance structure
- a) How would you describe the ?tone at the top? set by Tesla?s leader, Elon Musk? How does Musk?s leadership style and his ?tone at the top? contribute to possible fraud risk at Tesla Motors?
- b) How would you describe the company?s culture?How might this culture create pressures and rationalizations for fraud?
- c) Review Tesla?s Code of Business Conduct and Ethics (See Supplement 1 ? Tesla?s Code of Business Conduct and Ethics).How might any potential weaknesses in this code contribute to fraud risk at this company?
- d) Describe some possible concerns with Tesla?s board of directors. How might these concerns create opportunities and rationalizations for fraud?
2.Fraud risks related to Tesla?s incentive structures and stock performance
- a) To what extent are executives and employees incentivized with shares and stock options (See Supplement 2 ? Tesla?s 2015 Annual Report, Item 8 Financial Statements and Supplementary Data section, Note 10 ? Equity Incentive Plans)? How do these pay structures create pressures/incentives for fraud?
- b) Review Tesla?s stock performance over the last two years (refer to Exhibit 3). What fraud pressures does this stock performance create?
3. Develop a fraud risk matrix (see Exhibit 5 for an example) identifying the three fraud risk factors that you believe presents the greatest concern to the audit based on your assessment of their likelihood and significance.Focus on those fraud risk areas that pose the greatest potential threat for a material misstatement in the financials.
[1] Exhibits are at the bottom of the Case Study Document. Case Supplements are available as a download. These Supplements include Tesla?s Code of Business Conduct and Ethics (Supplement 1) and Tesla?s 2015 Annual Report (Supplement 2).
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/666cda978efef_879666cda9775651.jpg)