4.4 Professional ScepticismA recurring theme is whether the auditors exercised sufficient professional scepticism. Management presented optimistic forecasts and financial reports that downplayed One.Tel's deteriorating position. The auditor's role was to critically assess these claims, yet the optimism appears to have been accepted at face value.5. ASIC v Rich and Legal AftermathIn 2001, the Australian Securities and Investments Commission (ASIC) launched legal proceedings against Jodee Rich and Mark Silbermann (One.Tel's finance director). ASIC alleged that the directors failed in their duties by not properly informing the market and shareholders of One.Tel's true financial state.The trial, which lasted for years, was one of Australia's longest corporate law cases. In 2009, Justice Austin dismissed ASIC's claims, concluding that the directors had not breached their duties to the extent alleged. Nevertheless, the case exposed deep weaknesses in corporate reporting and governance.For auditors, the case was significant because it demonstrated how reliance on management's optimistic tone, combined with inadequate control testing, can lead to audit failures.

4.4 Professional Scepticism Arecurring thame is whether the auditers exercised sufficient professional scepticism. Management presented optimistic forecasts and financial reports that downplayed One.Tel's deteriorating position. The auditor's role was to critically assess these claims, yet the optimism appears to have been accepted at face value. . ASIC y Rich and Legal Aftermath In 2001, the Australian Securities and Investments Commission (ASIC) launched legal proceedings against Jodee Rich and Mark Silbermann (One_Tel's finance director). ASIC alleged that the directors failed in their duties by not properly informing the market and shareholders of One.Tel's true financial state. The trial, which lasted for years, was one of Australia's longest corporate law cases. In 2009, Justice Austin dismissed ASIC's claims, concluding that the directors had not breached their duties to the axtent allaged. Nevertheless, the case exposed deep weaknesses in corporate reporting and governance. For auditors, the case was significant because it demonstrated how reliance on management's optimistic tone, combined with inadequate control testing, can lead to audit failures