Contemp Issues Auditing ACC-512-MAOL1Case StudiesCase assignment:Case 2.6- Bernard L. Madoff...

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Contemp Issues Auditing ACC-512-MAOL1Case Studies﻿Case assignment:Case 2.6- Bernard L. Madoff Investment and Securities: A Focus on Auditors’ and Accountants’ legal liability from Thibodeau Audit & Accounting (CUSTOM).Respond to the required questions in the last page of the case (about 50 words each question), double-spaced, APA format (source citations and reference insertions) essay.In each Case Study, you must use at least three (3) references, including the textbook (included below).Text book reference:APA reference. Any sources including, but not limited to:Messier, W. F., Glover, S. M., & Prawitt, D. F XXXXXXXXXXAuditing & Assurance Services: A Systematic Approach (10th ed.). New York: McGraw-Hill/Irwin. ISBN: XXXXXXXXXX(This Assignment Box maybe linked to Turnitin.)See attached pages from textbook attached below.

Khushboo · Accepted Answer

Solution 1:
According to the information given in the case, due care was not performed in the audit of BLMIS. According to the principle of responsibility auditors are responsible for maintaining skepticism while auditing and must exercise professional judgment in performing the audit and this was not exercised by the auditor in this case (Freedman John). The auditor did not conduct any independent confirmation of the company asset and other items such as bank statements during the audit. Further the auditor did not test the internal control of the company to prevent the fraud.  Thus this principle is not fulfilled by the auditor.
Solution 2:
The audit evidence must be competent which means that quality evidence should be collected related to the assertion of the financial statement (Messier, W. F., Glover, S. M., & Prawitt, D. F. 2017).

Contemp Issues Auditing ACC-512-MAOL1 Case Studies Case assignment: Case 2.6- Bernard L. Madoff Investment and Securities: A Focus on Auditors’ and Accountants’ legal liability from Thibodeau Audit...

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Contemp Issues Auditing ACC-512-MAOL1 Case Studies ﻿ Case assignment: Case 2.6- Bernard L. Madoff Investment and Securities: A Focus on Auditors’ and Accountants’ legal liability from Thibodeau Audit...

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Contemp Issues Auditing ACC-512-MAOL1 Case Studies Case assignment: Case 2.6- Bernard L. Madoff Investment and Securities: A Focus on Auditors’ and Accountants’ legal liability from Thibodeau Audit...