Please do answer the discussions as mentioned in the attachment.

Solution 1
The COSO framework can be defined as enterprise risk management framework which mainly focuses on creation of a strong link between strategy, risk and business performance. The framework is mainly used to implement internal controls into business processes and to bring greater transparency in business processes and operations. The breach of any component of COSO framework can be resulted into a big scam and Enron scandal was one of the classical example of breaching of principles of COSO framework. The detailed analysis of fraud can be understood for five components in detailed manner as per below analysis:
1. Control environment- Under control activities, the internal controls are put in place so that the business processes are followed smoothly and without any fraudulent activities. In case of Enron, it was clearly breached and there were lack of effective internal controls.
2. Risk assessment and management- The lack of risk assessment and management was clearly absent in case of Enron. The company used mark to market accounting and it resulted in wrong accounting disclosures and put the faith of investors in vein.
3. Control activities- The control activities are tied with concept of risk management and the control activities were clearly absent in case of Enron scandal. The company was transferring funds in SPVs to show main holding company as debt free and there was clearly no control over funds movement (Brein Posey, 2020).
4. Information and communication – The management of Enron was disguising various facts and was not disclosing fraudulent activities to its shareholders. There was clear lack of transparency in communication system and no industry standard practices were followed by the entity.
5. Monitoring- There was no monitoring of transactions in case of Enron and it resulted in a big scam.
Solution 2
US GAAP are the accounting standard guidelines issued by FASB and US GAAP are mostly applicable for the...