Assessment Number: TESLA Case

Tesla Case 1
Date: 02 / 04 / 2020
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Assessment Number: TESLA Case

Tesla Case 2
The cases is explained in and analyzed in part basis which being the Part I and Part II.
Part I of the case explains the following points: - Identifying Fraud Risk Factors
Q1 a –
The “tone at the top” which is expressed by the CEO is to contribute towards the fraud risk
policy. They same was done in order to protect the goodwill of the company which was built
over the given time period. The Elon Musk must use top down approach for leadership format
and at the sam0e time ensure to be strong enough to provide no trace of the sympathy and
empathy on his actions
Q1 b –
The culture of the organization is based on the subtle description .The company creates a culture
which has a very high level of reputation for the company. On the more, it creates a level of
pressure along with the aspect of rationalization for the fraud (American Institute of Certified
Public Accountants 2007).
Q1 c –
The biggest weakness is the conflict of interest especially on account of the board of directors.
Primarily, because they do not tend to follow anything and may lead to invite fraudulent
activities. The other is on account of the record-keeping section or called as the off the books.
Q1 d –
The major concern is the CEO of the company has various relatives for the company; the biggest
example is Elon Musk Brother who is a director in Tulsa as well as other. This may create a

Tesla Case 3
major alarm on account of the fraud chances as the connection is correlated and can be used to
weakness company interest.
Q2 a –
Stock options reported accounted by stock options by around 5274901, further, the company can
definitely purchase stock by giving away around fifteen of salary. Initially they may lead to buy
around 85 Percent of shares; therefore, the company may plan to rationalize fraud.
Q2 b –
The stock performance is bad and showing a negative performance, which may lead to lower
level of salary to employees. Thus, this situation may land up to tempt the company management
to provide false or wrong information in terms with the financial information.
Q3 a –
The Main revenue for the company is thru sale of the manufactured automobiles. On the more,
the company increase its market penetration is mainly by adding more on the sale of its products.
The annual report specifies that the account receivable provide the sum of revenue in connection
to the power train, receivables, as well as the maintenance activities in connection of the
automobiles and also shows the regulatory credit which provided to its market competitors.
Q3 b –
The company can attain assets in terms of the monetary through the connection of the fraudulent
means as well as invite to make similar investments in the money market. Further, it may lead to
fraudulent options in terms of overhaul and receiving maintenance.