Case 5-2 ZZZZ Best1

1. With reference to ZZZ Best case, doyou believe that auditors should be liable for fsiling in situations such as ZZZZ Best, where top management goes to great length to fool the auditors? Explain.

2. Discuss the red flags that existed in the ZZZZ Best case and evaluate Ernst & Whnney's efforts with respect to fraud risk assesssment. Criticize the firm's approach to the audit from a professional judgement perspective.

3.There are selected numbers from the financial statements of ZZZZ Best for fiscal years 1985 and 1986

a. What is the purpose of performing analytical review procedure in an audit performed under GAAS? What calculations or analysis would you make with these numbers that might help you asses whether the financial relationships are "reasonable"?

b.Given the facts of the case, what inquiries might you make of management based on your analysis

4. Why do you think Minkow was able to pull off the fraud at the church for so long and not detected?