Answer the following questions 1- What do you think about the attitude of professional skepticism? Should the auditor be a skeptic or should he/she distrust management? 2- The book distinguishes between foreseen and foreseeable third parties. What do

Answer the following questions

1-      1- What do you think about the attitude of professional skepticism?  Should the auditor be a skeptic or should he/she distrust management?

2-      2- The book distinguishes between foreseen and foreseeable third parties.  What do you think about this issue?  Shouldn't auditors be liable to anyone who looks at the audit report, whether known to the auditor or not?  Or should the auditor be liable only to parties that he/she knew would rely on the report?  How does your answer fit with the objectives of an audit in general?

3-      3- The book presents possible auditor defenses to lawsuits.  Which of these do you think will be the hardest for the auditor to prove in court?  Which will be the better defense in a lawsuit?  Why?

4-     4-  There are five major assertions in the financial statements.  Should the auditor examine each of them in each account?  What is the impact if one assertion is not met?