Toshiba
Question 1
Toshiba could have issued a public apology to the company’s shareholders and stakeholders. Toshiba would have vowed that it would return to principles regarding the company that had earlier on been created. Toshiba would have also developed the management revitalization committee comprising of outside directors as well as experts. The organization could also have reinforced audit functions and then implement the new internal controls to improve the corporate governance structure and create a new internal audit division. Another thing the organization could have one increases the number of outside directors sitting on board of directors and then introduce the new evaluation process or system for both the CEO and the president. This will increase the sense of transparency and accountability in the organization.
Question 2
If the organization was operating in the US, such a scandal could not have occurred at all. American has a culture of individualism and not collectivism. Independence and individualism are coveted in the US. When it comes to respect and authority, American has the right to question authority. In the US, the power is usually distributed among the managers at every hierarchical level. This is not the case with pan where power is more concentrated at the top as such most decision is made at the top positions. In this case, scandals such as one with Toshiba could not have escaped. While the US organization dwells more on feminism when it comes to power, the japan organizational culture concentrates so much on masculinity. Another characteristic of the US organization is that plans are always done in the short-term time period; this is not the case with Japan as long-term planning is the order of the day.
Question 3
In contrast to external auditors, internal auditors in this case study had less independence because of reporting to the audit committee. As a result of lifetime employment as well as blind loyalty, internal audit ended up filing to recognize the ongoing fraud. Committee also gave the impression that internal audit fault was due to focusing on the consultation services instead of assurance services. However, the key fault of internal audit was due to the failure to pay attention to the accounting audit.