During the audit of a corporation's major division, an auditor interviewed an accounting clerk. The clerk told
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Question:
The following day, you received the following e-mail from the company president:
The controller of Division B informs me that you have discovered a questionable account classification dealing with research and development expense. I am aware of the issue. You are directed to discontinue any further investigation of this matter until I inform you to proceed. Under the confidentiality standard of your profession, I also direct you not to discuss this matter with other managers, the audit committee, or the outside auditors.
As the director of internal audit, write a short memo in response to the president's e-mail. Be sure to explain the position you are taking and why this position is appropriate.
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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