Question No 4: (10 Marks) Tyco International Private Limited is operating in over 60 countries and claims to be the largest designer and maker of undersea telecom equipments. Tyco International is also considered as world's largest maker and provider of electrical and electronic components; and they are also maker of fire protection systems and electronic security services. Tyco's former CEO Dennis Koslowski, former CFO Mark Swartz, and former General Counsel Mark Belnick were blamed of giving themselves interest free loans that were never approved by the Tyco board of directors. They were also accused of selling their company stock without informing investors. Koslowski, Swartz, and Belnick stole $600 Million from Tyco International through their unapproved incentives. Tyco also incorrectly accounted for certain executive bonuses they paid, thereby excluding from its operating expenses the costs associated with those bonuses. As a result of these various practices, Tyco made false and misleading statements and omissions in its filings with the commission and its public statements to investors and analysts. a. In your opinion, what was the outcome of Tycos misuse of funds on professional bodies and shareholders? What was the challenging part for SEC in investigating this high profile scandal? (5 Marks) b. What would you suggest to auditing companies and Securities Exchange Commission to take steps to avoid such scams in future? (5 Marks) Your answer should be around 400 words for each question.