Auditing Case Report Illegal Activities

Auditing Case Report illegal activities 1. Background The International border of employment serves a multinational financial institution. It has opened its branches in 23 countries. IBC as our audit lymph gland has been care bounteousy audited. But, during the auditing procedure, we bring nigh important issues. First, they had made improper loans to stockholders and other think parties. Second, loans preserve on book were false or deceitful. Besides, we ascertained that the elderly managers not only knew these illegal activities but overly participatedin them. agree to professional standards, we reported the illegal issues to the IBCs visiting card of directors and thusly the board of direct will give near feedbacks. This is the ordinary procedure to go through. However, IBCs committee did not fulfill the necessary actions to deal with the illegal activities or embarrass much(prenominal) acts before they happened. So, we were considering whether we should report the issues directly to the Securities and Exchange Commission (SEC) or to take other proper actions. 2. Analysis In this situation, we whitethorn shock the rule 301 of the code of Conduct well-nigh the cloak-and-dagger client randomness. A member in public usage shall not disclose any privy client reading without the circumstantial consent of the client.

This rule shows us that even though we shtup get so much cultivation during our discipline because recover to the companys most confidential financial affairs, we plentyt give them to the third parties without informing the company. Because the confidential information is so important that may financially hurt bec ause wetting such information. And it espe! cially stresses the confidential nature of information obtained by CPAs from their clients. The rule prohibits CPAs from directly disclosing illegal acts to outside parties, unless the auditors tour of duty in a legal duty to do so (Whittington and Pany, 2011, p87). If we have not informed IBCs board of directors about those issues but have reported...If you want to get a full essay, order it on our website: OrderEssay.net

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