Please RESPONSE to the following:
The Public Company Accounting Oversight Board (PCAOB) established several regulations to optimize the level of ethics with which auditors conduct business. Some of these regulations outline the auditor's responsibility to detect fraud, as well as provide strict boundaries between auditors and the companies audited to prevent conflicts of interest or potential fraud at the hands of auditors. The mandates for audit reports to be reviewed and approved by a "reviewing partner" and the Corporate Responsibility Act (Section 301) requiring public companies to have audit committees are both regulations that allow auditors to embrace their roles in detecting fraud because these mandates enable them to seek professional advice and expertise of other auditors-independent of the employees or executives of the companies bring audited (Hopwood, Leiner, & Young, 2012).
Reference:
Hopwood, W., Leiner, J., & Young, G. (2012). Forensic accounting and fraud examination (2ndEdition).