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The auditor should have identified any financial irregularities, including if statements were falsified, said Harrington.

“They should have at some point had some concerns about the money-in, money-out problem and dug deeper, whether it’s with a call to the bank or a deeper look at the CFO or even saying something to the board chair or audit committee,” she said.

Ethics Center Fellow, Joan Harrington, quoted by the Detroit Free Press.