1. Use the Fraud Triangle to analyze the business and audit risks that existed at Diamond Foods during the period of its accounting fraud.

2. How would you characterize Diamonds accounting? Did they commit an error in recording walnut grower payments? Was it an illegal act? A fraudulent act? For each one, explain the reporting requirements for Deloitte assuming they were aware of the transactions.

3. What are auditors obligations with respect to accounting estimates and judgments made by management? Explain any concerns that should have existed about these areas of the audit. Assume that Deloitte was aware of these issues. Would any of them rise to the level of a critical audit matter? Explain.

4. Do you think non-GAAP information, such as that provided to financial analysts, should be audited? Consider the value of such information to the users of financial reports in answering this question.