Brand X accounting firm realizes that one way to think about its business is to consider itself to be in the business of selling relatively high-priced labor.Since labor is one of its biggest costs, it decides to hire graduates of diploma mills.The graduates have degrees, but the schools have such low standards that the graduates typically do not understand business (economics, finance, management, marketing, business law, information systems, etc.)

You have been retained as an expert by a law firm which is suing Brand X accounting firm.One of Brand X's offices has botched an audit because some people were hired from a diploma mill, and they simply did not know how to do the audit.Their supervisor had graduated from a different diploma mill, and the supervisor initialed their work papers to signify that he agreed with what they had done.At the end of the audit engagement, the supervisor also gave glowing performance evaluations to the people who worked on the audit engagement.

Required:

a. Prepare a report for the law firm which is suing Brand X accounting firm.Start with a list of comments which are based on appropriate citations from the authoritative professional literature, and give the paragraph citations (such as AU 326.05-326.07).Continue with a list of comments which are not based on the authoritative professional literature.Then, after you have completed your list, refer to your list and explain each comment.

b. Lawyers have to deal with questions of fact and also with questions of proof.Refer to your list and explain how the lawyer can obtain proof for each item on your list, or else that no proof is likely to be available.

c. Explain the strengths and weaknesses in such a suit from an auditor's standpoint, plus what evidence (to be sought later) or conditions (tobe investigated later) would tend to strengthen or weaken the case against the accounting firm