The SEC did not criticize Accuhealth’s independent auditors in the various enforcement releases issued concerning the company’s fraudulent schemes. Under what general circumstances auditors should not be held at least partially responsible for such schemes? Defend your answer.
Answer to relevant QuestionsWhat specific audit procedures might have led to the detection of Accuhealth’s fraudulent cash and inventory schemes?Identify the accountants in this case who faced ethical dilemmas. Also identify the parties who would be potentially affected by the outcome of each of these dilemmas. What responsibility did each accountant owe to these ...Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given financial statements? Defend your answer.How would you respond if you faced a set of circumstances similar to those faced by Guy Enright?The appellate judge who reviewed the lower court opinion in this case observed that Marshall may have been “morally obligated” to warn Rojas’s new employer of her prior criminal conduct. Explain the difference between ...
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