The Dell fraud described in the chapter involved an exclusive relationship with Intel that agreed to pay rebates on the purchase of computer chips in exchange for the right to sell computer chips to Dell.
a. What is the auditor’s responsibility to disclose this relationship? Were outsiders harmed if they did not know about the arrangement?
b. Why did Dell shareholders file a class action suit against the company?
c. What is the auditor’s responsibility when the audit client receives rebates from one of its suppliers? Explain your answer.