Question

See the "Madison Wells, Audit Manager" case for this question. Do you agree with Daniel Alanis that auditors are not entitled to make "honest mistakes"? Defend your answer

Answer 1

We do not agree with Daniel that auditors are not entitled to make honest mistakes because we humans are not perfect , and mistakes can happen. Honest mistakes and being carelessness are two different things. In this case there was no due care. If they had been more aware and riskless, they could have avoided any mistakes. There seems to be the claim of " honest mistakes " as a way of not admitting guilt.

People are entitled to honest mistakes when an error is done innocently such as going into something or answered something without the correct knowledge or background. There is a difference between an "honest mistakes" made by some one that doesn't really directly affect anything and an auditor not following the AICPA in regard to due professional care. This does affect the uses of financial statements. "The auditor with final responsibility for the engagement should know, at a minimum , the relevant professional accounting and auditing standards and should be knowledgeable about the client.