You are a new auditor in a work group that is carrying out an audit process for a corporate client that is one of the most important clients of the audit firm. When you are in the offices of the client company, you realize that the purchases of the goods produced by the company, made by its employees, have been authorized by the production managers and processed outside the accounting system of the company business.

The income resulting from these sales is used for expenses related to the year-end festivities carried out by the company?

Describe what course of action you would take to handle this scenario and why. Where would you look for guidance or help to deal with this situation?