Question 4: (20 marks)

Toshiba, one of Japans oldest and most respected companies, in 2015 the leaders pushed its many business units to meet aggressive targets for revenue and profitability. When circumstances rendered those goals doubtful, managers of those business units altered the books to provide the illusion they had met their performance goals.

Required: Refer to above scenario identify and discuss the responsibility of auditors for detecting misstatement in financial statements.