In the Crazy Eddie case, there were many problems relating to the auditing firm and their auditing procedures.

(1)The auditors of Crazy Eddie were subject to certain broad criticisms regarding the audit engagement, some of which may have impaired their independence. Identify and briefly explain these criticisms.

(2)For the Crazy Eddie case, identify specific deficiencies in the auditors' procedures that led to their failure to discover financial statement fraud. For each weakness in auditing procedures identified, recommend an alternative approach/procedure that should have led to the detection of the frauds in question.