Business Ethics Analysis on The Volkswagen Diesel Emissions Scandal (Case Study Sample)

Instructions:

Volkswagen found itself in just such a position when it was discovered that the software in the company’s diesel vehicles had been programmed to provide false data to regulators regarding the level of emissions produced by the cars during testing. While the scandal was discovered in 2015, the company and the industry are still dealing with direct and indirect repercussions (Strauss & Hübner, 2021).
In their article “The Volkswagen Diesel Emissions Scandal and Accountability,” Jacobs and Kalbers (2019) question the role that several groups within the company played in the scandal, most notable, the company’s lawyers and auditors.
Research and review this situation and write a paper that fully explains the following:
1. As an employee or a manager in either the legal office, engineering department, or audit function within VW, how would you have prevented this scandal?
2. As the CEO of the diesel division of Volkswagen, how would you have responded when the situation became public? How would this response prevent future incidents?
Ensure that the following requirements are met:
 Must contain at least 800 words.
o The title page and reference list do not count towards the length requirement.
 Must be in current APA Format.
o But does not require an abstract.
 Support your analysis with at least 3 scholarly sources other than the course materials, cited in-text and in a reference list.
 Must also integrate Biblical worldview analysis.
 Must be submitted as a Word document.

source..

Content:

Business Ethical Analysis
Student's Name
Department, Institutional Affiliation
Course Number: Course Name
Instructor's Name
Due Date
Business Ethical Analysis
Question#1
A thriving organization needs both attorneys and auditors. The two personnel are crucial in advising a corporation on how to run its operations in compliance with all applicable rules and regulations. I could have stopped the Volkswagen pollution crisis in a number of ways as an auditor. In order to find any potential red flags, I would have first applied the International Auditing and Assurance Standard Board (IAASB) standards (Coram et al., 20210. Second, in accordance with International Accounting Standard (IAS) 315, I would have evaluated or assessed whether Volkswagen management, under the direction of those in charge of governance, has consistently upheld or fostered a culture of honesty and ethical conduct (Musleh Al-Sartawi et al., 2016). I would have avoided the scandal, in part, by having a better grasp of the corporate, ownership, and operational structures of the organization, as well as the pertinent market, governmental, and other external issues. Additionally, I would have thought about how weak corporate governance, poisonous company culture, and inadequate ownership could have impacted business controls and procedures, possibly resulting in fraud. By receiving reasonable assurance that Volkswagen's financial statements as a whole are free from substantial misstatement, whether brought on by an error or fraud, I would have likewise complied with ISA 240.
I also would have retained the three components of the fraud triangle—rationalization, opportunity, and pressure or incentive—to stop Volkswagen's emission issue if I had been an effective auditor. In addition, I would have strictly followed ISA 250 and taken into account the company's regulatory and legal environment, including carrying out specific audit procedures to help detect compliance with those rules and laws that may have a major impact on the financial statements (Musleh Al-Sartawi et al., 2016). As a qualified auditor, I would have generally exercised more caution in a variety of situations, such as those involving big promises about technology

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Business Ethics Analysis on The Volkswagen Diesel Emissions Scandal (Case Study Sample)

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