Question
Using what you know about the 2013 COSO IC framework, talk about what all various company employees might have tried to keep the internal control
Using what you know about the 2013 COSO IC framework, talk about what all various company employees might have tried to keep the internal control problems seen here from taking place
Earlier this century, a European automobile manufacturing company attempted to bypass various state and national clean air standards by installing special software in engines. The engines were given software that could tell when the vehicle was being emissions tested. Whenever the software found that it was being tested, it would switch the engine out of a normal operating mode and into a low-emissions operating mode, thus giving a falsely low reading on the test. In total, more than 11 million vehicles worldwide were equipped with the cheating software. When discovered by national and state government agencies, the company admitted to the wrongdoing. To date, they have spent over $20 billion in the United States alone to settle claims from consumers, regulators, and dealers. In 2017, half a dozen company executives were arrested for their part in the scandal.
Answers are judged subjectively, but good answers should display assessment and critical thinking while applying knowledge from the COSO IC components (CRIME) and potentially other topics as deemed relevant.
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