Question: 0-++-63 3our audit client, Didi Restaurant Ltd., operates a chain of restaurants in the Accra-Tema metropolis specializing in Ghanaian dishes. You are the audit manager

0-++-63

3our audit client, Didi Restaurant Ltd., operates a chain of restaurants in the Accra-Tema metropolis specializing in Ghanaian dishes. You are the audit manager in charge of the 2020 audit. You are informed by Mr. Kofi Kojo, the accounts manager of the client, that the Managing Director made payments of various sums GHS 2.5 million, GHS 3.5 million, and GHS 4.5 million on three-monthly occasions respectively into the bank account of the company. These amounts were later transferred to various foreign bank accounts in Nigeria, Columbia and Switzerland respectively, also on three-monthly occasions in different company names. Mr. Kofi Kojo also informed you that the Managing Director has instructed him not to record the transactions in the accounting records as they had nothing to do with Didi business. The annual turnover of the company had not exceeded GHS 1 million in the past three years.

Required: Comment on the situation outlined in the case.

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