Scenario 1: It is very important for organization's to have strict entity level internal control system Sophisticated controls and risk management capabilities supports many of the detailed business processes of these entities. Lack or absence of entity -control system of poor auditing may cause breakdowns in controls at the board and senior management levels which had contributed to many significant company failures in history. A closer look at what went wrong in these corporations can provide a glimpse into the importance of strong entity-level internal control systems. Activity: Research any one of the corporate failures due to auditing failures; Enron Corporation (U.S.A.), WorldCom (U.S.A.), Wells Fargo (U.S.A.). Volkswagen (Germany). Barings Bank (England) and Wirecard AG's (Germany). Tasks: Prepare a report for any one of the above corporate failures to answer the following questions. 1. What were the primary causes for each of these failures? 2. Which of those causes appear to represent entity-level control breakdowns? 3. What actions by the board or management may have prevented these breakdowns from occurring? After answering the questions in the above tasks, it should be clear why it is important for organizations to establish a strong entity-level control environment. [This tasks covers CLOs 3&4, Marks 7.51