please help explain and answer Study question number 2 & 3

Page DISCUSSION QUESTIONS 1. Refer to the fundamental principles governing an audit (see Chapter 2@ ). Under the responsibilities principle, auditors are required to exercise due care and maintain professional skepticism throughout the audit. Based on the case information, do you believe that the auditors from Frichling & Horowitz exercised due care and maintained professional skepticism throughout the audit? Why or why not? 2. After the Madoff case, the SEC instituted a number of reforms to its operations. Please visit the SEC's website (www.scc.gov) and search for Post-Madoff reforms. Next, please identify the two reforms that you believe will have the best chance of catching a criminal like Madoff. Make sure to provide justification for your choices. 3. Consider section 24 of the Securities Act of 1933 and section 32 of the Securities Exchange Act of 1934 (see Module C). Based on the case information, do you believe that Madoff's auditor, Friehling, should be facing criminal charges? Why or why not