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Material misstatements or omissions in Audit Reports: Auditors are required to report internal control weaknesses to management. The auditors however have no responsibility to report internal control weaknesses in the audit report and failing to do so does not constitute a material misstatement or omission.
Required:
A. Using the library, Lexis-Nexis, or internet find the case of James G. Monroe and Penelope E. Monroe v. Gary C. Hughes:
Thomas R. Hudson and Deloitte & Touche (1994 U.S. App. LEXIS 18003). Summarize the case.
B. List the reasons why the auditing firm was not found guilty of issuing an audit report with a material misstatement or omission(Written by Gian Dang, Pratima V. Todd and Bonnie Williams)
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