In June 2009, Deloitte agreed to pay almost $1 million to settle a class action lawsuit related
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A spokesperson for Deloitte indicated that the firm denies all liability and settled to avoid the expense and uncertainty of continued litigation.
a. Using appropriate sources research this case and identify fraud risk red flags that the auditor should have been aware of in these audits. One source that can get you started on your Internet search is: www.cfo.com/article.cfm/13612963?f=search.
b. If these fraud risk red flags were indeed present during Deloitte's audit, what were the auditors' responsibilities in conducting the audit?
c. Comment on Deloitte's willingness to settle the case, while at the same time denying liability.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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