Requirement 1: Economic events can lead to business risk for companies, which in turn can lead to audit risk. a. Briey describe some of the major events occurring in Japan and worldwide during the period 20072013 that negatively impacted the demand for Toshiba's products and services. How and why were the accounting choices made by company executives affected by these events? b. Describe the audit risk model and its components. How is management's incentive to misreport reected in the auditor's risk assessment, and how is it incorporated into each component of the audit risk model? How was audit risk at Toshiba affected by the incentives and pressures on management described in your answer to part (a)? 0. Why is it important for auditors to obtain a general understanding of the economic conditions and risks under which a business operates