Megachem plc is a multinational agri-business dealing in the import and export of agricultural produce, the manufacture and sale of fertilizers and pesticides, and the sale of agricultural machinery worldwide. During the audit, the auditors discover:
(a) There are several delivery notes for 'agricultural machinery' recording deliveries of crates of what are described as 'machinery parts' to several countries in the world where there are local conflicts. These delivery notes had been kept in a separate file in the CEO's office and marked 'confidential' and the auditors had been given it by the CEO's secretary, by accident, when requesting information about another, unrelated issue. No other documentation appears to exist in respect of the client's names recorded on the delivery notes and they do not appear in the Receivables Ledger.
(b) The company recorded the receipt of substantial bank transfers from accounts in Switzerland and Panama. These were recorded as 'consultancy fees', but there are no other records relating to these transactions and the actual client's name is not recorded.
(c) The firm appears to be employing consultants in various countries in the Balkans and the Far East as 'commissions' are being paid to them, but it is unclear precisely what services these individuals provide. When asked, the financial director refused to divulge any information citing confidentiality.
(d) In addition to the sums received from Switzerland the company is making material payments to a numbered Swiss bank account. The financial director has told the auditors that these are commissions to government officials in various countries who obtain business for the company.
(e) Visits to one of the manufacturing plants reveal that workers appear to be handling what look like dangerous chemicals without proper protective gear. The factory manager says that the gear is provided, but the workers refuse to wear it on the grounds that it makes them hot and impedes movement.
(f) There is an article on an environmental news website that a pipe at one of the company's plants is discharging chemicals into the adjacent river. The company says the effluent is treated and that they have a license to do this but can't show it to the auditors as they claim they have lost it.

Discussion
- Discuss the implications of these discoveries for:
• The auditors
• The company
• The financial statements.