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After watching this video and considering what you learned about the IMA’s Statement of Ethical Practice, think about what the auditors in this situation could have done to help catch Barry Minkow? Do you think his auditors violated any of these ethical practices? If so, why, and tell me which ones you think were violated? What things do you suggest the auditors could have done that would have helped to catch the fraud more quickly? Do you think Joe Domanick’s theory on why the fraud wasn’t uncovered sooner is correct? Why or why not?
In case you are interested, this is what he has been doing since that time:
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