Honey, we're not making you responsible for the failure of the American economy, we're making you responsible for your failure. How do you find the real books, you ask? Haven't you ever heard of a "subpoena?"
I've never had an auditing class and I can answer that one, and I don't even work for the SEC. First off, you verify cash balances against bank accounts for all cash accounts on the books. You verify balances with investors. You analyze accounts for transactional integrity (did the transactions recorded actually take place? Where's the paper trail? SHOW me the paper trail).
You perform a reasonableness test of the numbers. Does it look like the returns are reasonable? As an example (I don't have the real numbers), is the one being audited claiming 15% returns when everyone else is claiming 7%. Where are they invested? Are the investments the same ones that claim 7%?
Finding fraud CAN be done. There's a whole industry devoted to it. You can claim that fraud is hard to detect, which CPA's often do, but when you've been TIPPED to it, you have to do more due diligence to see if it's there.
This woman should at the least lose her cushy government job, and never be allowed back into the bureaucracy again.