Steve Woods performed an audit on the ABC corporation and issuedan unqualified report. Steve performed the audit with due care andin accordance with GAAS. Three months later, he discovers on thenews that the CEO of ABC, has been stealing small amounts ofinventory. The amount was not material compared to the overallinventory of the corporation. The CFO, Mr. Big called Steve and heasks for Steve to refund the audit fees because Steve did notperform the audit properly and discover this fraud. How shouldSteve Woods, auditor, respond? Please write at least 300 words.
