Yes, the auditors should be sued. Hold them accountable, hold their feet to the fire. At the very least, make them answer to their apparent oversight. McGladrey Pullen & Madoff = (sounds like) We Glad We Pulled (Wool over eyes) and Made Off (with client funds)

...it was just money...in a 1,000 yrs who will care?

Leave it to the Strib to spell RSM McGladrey wrong. Is there an editor anywhere?

Auditors do not exam every transaction. They vouch a sampling of checks and invoices, they do not physically inspect the inventory unless the bank directs it, and they verify loans in existence and confirm them with institutions. The auditors are not responsible for detecting fraud. This is accounting 101. That would fall under the title of a forensic accountant. The auditors did not negligently give an opinion, they give one based on the facts and circumstances laid out to them. Auditors can be deceived as well, as an audit looks at a company from a very high level, a forensic accountant dives into the nuts and bolts of things...and most forensic accountants are only called in after a fraud has been detected.

External Auditors are required to give reasoanble assurance on their Client's Financial statements. They are not advocates of Client that perform due diligence work on behalf of their clients such as inspecting the their customers (that's the client's job). Had they hired a firm to conduct due diligence they and they failed to detect fraud then there is neglignce. This suit has zero merit and should be thrown out.

Here we go. Investers make bad decisions. Never thought to vet the guy getting great returns 25 yrs in a row. Nothing fishy there. Not their fault, it has to be somebody else's. Sue them! This is America after all, litigation capitol of the worl!!! Hmmm next time I go to vegas and lose my shirt, I think I'll sue the manufacturer of whatever game I played.

They should be held accountable. I don't think its unwarranted to go after auditors as long as these firms reasonably relied on the financial statements. Maybe they did everything they could but with the description of internal control given in the news papers it does not appear an audit could be conducted successfully.

Auditors basically do nothing. They are generally young peeps who just make sure the t are crossed and the i's are dotted. That’s all; its mostly just a cash cow for the companies that do it.

The RMS McGladrey is a Royal Mail Steamer similar to the RMS Titanic I believe.

Don't forget that RSM McGladrey is being sued by a court appointed US Trustee for the failure of a chicago based money market fund (Sentinel mgmt group) in 2007. We're talking about a money market fund folks, not some black box driven hedge fund strategy. Sentinel was defrauding clients and misrepresenting securities owned. Guess who their auditor was: RSM McGladrey. This fraud was only $500mm, but it is another example complete ineptness.