Auditing and Accounting Cases: Investigating Issues of Fraud and Professional Ethics 3rd Edition by Jay Thibodeau,Deborah Freier

Exercise 1

Refer to the Fundamental Prinicples governing an audit. 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 Friehling Horowitz exercised due care and maintained professional skepticism throughout the audit? Why or why not?