This one comes from Melanie:
I came across this article and thought is was very thought provoking, since 3 “Big-4” are making the headlines; legal action is being taken against them for not detecting fraud. In particular, this lawsuit is implying that as auditors, Deloitte should have uncovered the fraud. How could this be true, when the detection of fraud is not the responsibility of the auditor? Auditors are required to provide reasonable assurance that the client’s financial statements are free of material misstatements based on sample testing.
Will the public’s perception that the job of an auditor is to uncover fraud ever change? Should audit firms really be held responsible for problems arising from the financial crisis? What do you think?