Final answer:
The most accurate statement is that independent auditors must adhere to strict regulations, including those instituted by the Sarbanes-Oxley Act, designed to protect investors and enhance the reliability of financial reporting.
Step-by-step explanation:
In response to the question regarding the role and rules for independent auditors in light of Bernard Madoff's fraud case, the most accurate statement is that independent auditors must follow strict rules, including new rules put in place by the Sarbanes-Oxley Act. The Sarbanes-Oxley Act was instituted to increase confidence in financial information and protect investors from accounting fraud, following major scandals at corporations such as Enron, Tyco International, and WorldCom. It imposes rigorous requirements on auditing processes to ensure the integrity and transparency of financial reporting by public corporations.
Research in the field has emphasized the responsibility of researchers and auditors to ensure proper methods are followed. The investigation into Stapel's fraud highlighted the significance of being familiar with statistical analysis in spotting irregularities. Additionally, the board of directors, the auditing firm, and outside investors form the three institutions of corporate governance to oversee the company's financial integrity, as evident in the failure revealed by the Lehman Brothers case.