Question
Steve Woods performed an audit on the ABC corporation and issued an unqualified report. Steve performed the audit with due care and in accordance with
Steve Woods performed an audit on the ABC corporation and issued an unqualified report. Steve performed the audit with due care and in accordance with GAAS. Three months later, he discovers on the news that the CEO of ABC, has been stealing small amounts of inventory. The amount was not material compared to the overall inventory of the corporation. The CFO, Mr. Big called Steve and he asks for Steve to refund the audit fees because Steve did not perform the audit properly and discover this fraud. How should Steve Woods, auditor, respond? Please write at least 300 words.
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