Read the case of Bernard L. Madoff: The Fraud of the Century on page C37-C-39. Answer the 3 Discussion Questions (each worth 5 points).

1. Refer to the fundamental principles governing an audit (see Chapter 2). Under the responsibilities principle, auditors are required to exercise due care and maintain professional skepticism throughout the audit. Based on the case information, do you believe that the auditors from Friehling & Horowitz exercised due care and maintained professional skepticism throughout the audit? Why or why not?