Case 6-9 The North Face, Inc.

Please read the assigned case above and answer the questions below. Please create one multiple-choice question based on the case with four answer choices. Please create quiz questions based on the major issues of the case. Please do not make true-false, discussion questions and numerical questions. Include the correct answer.

1. Use the fraud triangle to analyze the red flags that existed in the case and the role and responsibilities of the auditors at Deloitte & Touche. Assume the Deloitte auditors had confronted Crawford about the impropriety of accounting for barter transactions. What reasons and rationalizations do you think would have been provided by Crawford?
2. Why do auditors have a responsibility to assess the key decisions made by management? Which decisions in this case should the auditors have scrutinized more carefully?
3. Should materiality considerations have entered into the auditors' decisions whether to accept North Face's accounting? Does it matter that earnings management was the motivation for the accounting?
4. Comment on the quality of the audit performed by Deloitte.

Can you try and write the assigned questions at least 300 words with the correct answers please? Also, can you kindly make multiple-choice questions with the correct answers please? Thank you.