Auditing Cases 6th Edition by Mark Beasley,Frank Buckless,Steven Glover,Douglas Prawitt

Exercise 7

The loss from Kerviel's rogue trading resulted in a loss many times greater than audit materiality. The external auditor did not discover the misstatement. Was this an audit failure Conduct internet research to determine if the external auditors, Ernst Young Audit and Deloitte Associes, were named in law suits associated with the loss due to the trading fraud.