Prepare a memo (typed, three pages, one staple, one-sided, double spaced, 12-pitch, New Times Roman, and 1 inch margins) addressing the following points:
Discuss the role of the audit and perform an audit risk assessment for these two clients.
Compare and contrast the two events encountered by PwC and discuss if they have violated any ethical or professional standards.
In your professional opinion, which event would PwC suffer greater lost credibility? Stated differently, which event was more egregious? Your response should consider the position of both the client and main users of financial statements (e.i., shareholders and creditors).
Briefly discuss PwCs potential legal liability for these two these events.
Briefly discuss if PwC responded to these two events in an appropriate manner.