1. Do you think L&H’s actions with respect to Locate Plus and its alleged relationship with Omni Data illustrates a case of moral blindness? Explain with respect to the ethics of actions by Locate Plus and its effect on audit decisions by L&H.
2. A critical element of the due care requirement is to approach an audit with professional skepticism. Evaluate the audit procedures and decisions made by L&H with respect to this ethical standard.
3. Evaluate the legal liability of L&H, Howley and Wood using the legal concepts discussed in this chapter. Support your analysis with reasoning as to whether the auditors failed to exercise ordinary care, were grossly negligent, or committed fraud.