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4.8
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Internal Control Environment

From Case 5, discuss the role of the audit committee and its responsibilities.
Determine whether the responsibility to hire and fire audit managers should have
prevented the firing of the chief of internal auditing by Microsoft management
for reporting fraudulent activity. Support your position.
the existing internal control environment at Microsoft to
management s responsibility for designing effective internal controls outlined
in the textbook, and identify the deficiencies that existed. Speculate on what
types of internal controls could have been designed to detect the accounting
irregularities, and provide at least two reasons why the internal controls that
were in place at Microsoft were not effective in detecting the accounting
errors. Provide specific examples.This is a discussion question that don’t have to be no more than a paragraph or two.

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