1. the enron debacle created what one public official reported was a "crisis of confidence" on the part of the public in the accounting profession. list the parties who you believe were most responsible for that crisis. briefly justify each of your choice. 2. list three types of consulting services that audit firms are now prohibited from providing to clients that are public companies. for each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firm's independence. 3. the sec does not require public companies to have their quarterly financial statements audited. what responsibility, if any, do audit firms have with regard to the quarterly financial statements of their clients? in your opinion, should quarterly financial statement be audited? defend your answer.

Consider the following potential events that might have occurred to global on december​ 30, 2016. for each​ one, indicate which line items in​ global's balance sheet would be affected and by how much. also indicate the change to​ global's book value of equity. a. global used $ 19.8$19.8 million of its available cash to repay $ 19.8$19.8 million of its​ long-term debt. b. a warehouse fire destroyed $ 4.9$4.9 million worth of uninsured inventory. c. global used $ 4.6$4.6 million in cash and $ 5.1$5.1 million in new​ long-term debt to purchase a $ 9.7$9.7 million building. d. a large customer owing $ 3.2$3.2 million for products it already received declared​ bankruptcy, leaving no possibility that global would ever receive payment. e. ​global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 48 %48%. f. a key competitor announces a radical new pricing policy that will drastically undercut​ global's prices.