As always happens, when an accounting fraud comes to light, people ask, $$where were the auditors?$$ Moonstay is no exception, especially with the SEC bringing civil fraud charges against the CPA Pinterest partner in charge of the audit engagement. The evidence seems to indicate that this partner was aware of various aspects of the accounting fraud yet signed unqualified audit opinions for both $1996$ and $1997.$ Identify the stakeholders who have been harmed by this auditor's failure. Whose interests do you think this auditor was trying to serve? Whipsaw Bill Smith and his management team or the stakeholders you have identified. Why might an auditor favor the interests of management over those of other stakeholders?