Lehman Brothers Holdings, Inc.

Please read case no. 1.2 Lehman Brothers Holdings on pages 23-38 in the Knapp book and answer the following questions:

(a) What is the auditor's responsibility to detect fraud?
(b) What should be the auditor's responsibility to detect fraud?
(c) What is the expectation gap?  What has been done to narrow the gap?  What could be done?
 (d) What is the proper accounting for repurchase transactions?
 (e) Did Lehman Brother's accounting for repurchase transactions constitute fraud?
 (f) Did the auditors have a duty to identify the accounting for repurchase transactions?
 (g) What alternatives are available to the auditor when its accounting policies are suspect?

Important notes:

1- The assignment is 4 pages long. 
2- References MUST be placed at the bottom of the page where appeared as a foot note.   
3- Please answer all the questions and add some examples form the cases.
4- Some of the questions are general and can be answered from other sources than the case but it would be better if you give an example from the case itself to support the answer.