Refer to your resources for this week to review the case to identify and assess fraud and risk. Consider the following questions as you read through the case: What could the auditor have done to detect the fraud? Was there due diligence in this case? What is the probability of the company continuing operations based on the information in the 2008 SEC Form 20-F? Based on the evidence in this case, what additional procedures would you have suggested before the final report was issued? After reading the case and reviewing the SEC filing, what would you report as findings regarding an ongoing concern? Conduct an Internet search for news reports on this company. News websites must be cited if used but these sources do not contribute to the scholarly citations requirement.

Answer rating: 100% (QA)

Solution Based on the information provided in the case it appears that the auditor did not conduct sufficient due diligence to detect the fraud The auditor relied heavily on managements representation... View the full answer