Problem:
Based on textbook titled "Riding the Tiger: Indian Computer Company Engages in Billion Dollar Fraud," as well as the story titled "CEO Confesses to Falsifying Documents to Hide Fraud for Over 20 Years," in which the CEO of the company attempted to commit suicide after his Las Vegas wedding, what do these two stories have in common in terms of lessons learned from the auditors' perspective? Selected Answer: Correct C) The auditors failed to obtain confirmations directly from the source. Answers: A) The auditors did not consider the audit risk model. B) The auditors focused more on misstatements due to Which of the following is true about the Wells Fargo story from the textbook discussed multiple times in class? I. The story is an example of how the culture of a company and management's (aggressive sales) pressures can create an incentive and motivate employees to engage in fraudulent activities. II. The total amount of the misstatements due to fraud were not material to the financial statements as a whole. III. The auditors were required to revise their opinion on the financial statements after the fraudulent activities were detected.