User expectations of auditors may differ markedly from goals that the profession is capable of meeting. For example, the Commission on Auditors’

Responsibilities stated that users expect “the auditor to evaluate the measurements and disclosures made by management to determine whether the financial statements are misleading, even if they technically conform with authoritative accounting pronouncements.” Similarly, surveys by Lou Harris and Associates indicate that many users expect the auditors to detect fraud.

Required:

Review recent studies or news articles that comment on auditor responsibilities. Evaluate the recommendations made regarding audit responsibilities, and indicate whether you believe the recommendations are reasonable. Briefly support your opinion. Pay particular attention to SEC reports and The Blue Ribbon Commission on Audit Committees.