1. After an auditing firm signed off on Acmes financial statements, Acmes CFO and thehead of its sales department were indicted for falsely reporting sales and earnings over a three-year period by creating phony invoices on non-existent sales. Acmes CEO and chairman professed ignorance of the scheme and fired the CFO and head of sales once the scheme became known.
   1. Do you believe these three groups knew of the fraud?

      Acmes CEO _________________

      Acmes Board of Directors ______________

      External auditors __________________________

   2. Using a seven-point scale (1=no responsibility; 7=complete responsibility), rate how much responsibility did these parties have to uncover the fraud.

      Acmes CEO ________________________

      Acmes Board of Directors _________________

      External auditors __________________

   3. On which side would you support in a lawsuit for professional negligence brought by investors against Acmes accountants?