Critical lessons learned after analyzing major criminal cases against auditors include the fact that

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One of the critical lessons learned after analyzing major criminal cases against auditors is that an investigation of the integrity of management is an important part of deciding whether to accept a new client. In some cases, unethical or fraudulent behavior may be perpetrated by management, and if the auditors fail to detect this, they may be held liable for their negligence. Therefore, it is essential for auditors to conduct a thorough investigation of management before accepting a new client. Choices A, B, and D are incorrect because they are either incomplete, inaccurate, or overly simplistic. For example, while independence is a critical factor in auditing, it applies to the entire audit team, not just the partner. Transactions with related parties may or may not indicate fraud, and relying solely on accounting principles is not sufficient for ensuring that the financial statements are fairly presented.

Critical Lessons Learned After Analyzing Major Criminal Cases Against Auditors