Ron Barber, CPA, is auditing the financial statements of DGF, Inc., a publicly held company. During the course of the audit, Barber discovered that DGF has been making illegal bribes to foreign government officials to obtain business, and he reported the matter to senior management and the board of directors of DGF.
a. If management and the board of directors take appropriate remedial action, should Barber be required to report the matter outside the company?
b. Describe Barber’s appropriate response if management and the board of directors fail to take appropriate remedial action.