Discovery of unlawful acts, Auditing

Discovery of unlawful acts

When an auditor discovers unlawful acts, usually he is not expected to disclose to the police or other authorities unless:

  • The client authorises disclosure;
  • That disclosure is compelled by process of law for example, a court order;
  • That disclosure is required in the auditor's own defence;
  • The conditions are such that the auditor has a public responsibility to disclose, for illustration, when the client has committed a serious crime or his act is treasonable.

 

Hence to sum up, the auditor on discovery of an unlawful act must do nothing positively to assist in the offence or to prevent its disclosure. He should bring all offences of employees to observe of his clients. When the offence is such that its non-disclosure means that the accounts are not showing an accurate and fair view, then the auditor must insist on disclosure or qualify his audit report. Discovery of material defects in prior accounts must be pointed out to the client with recommendation for disclosure.

Posted Date: 12/3/2012 5:07:52 AM | Location : United States







Related Discussions:- Discovery of unlawful acts, Assignment Help, Ask Question on Discovery of unlawful acts, Get Answer, Expert's Help, Discovery of unlawful acts Discussions

Write discussion on Discovery of unlawful acts
Your posts are moderated
Related Questions
YvesLaurent has just been put in charge of the BeautyNatural Inc. audit.BeautyNatural is a small, but growing retail chain of natural cosmetics stores. BeautyNatural needs to borro

Ownership and Existence - Verification Procedures Establishment of title and beneficial ownership of investments is not convincingly possible. Conversely, evidence is obtainab

Contingencies and Provisions (i) Receive the client's schedule of provisions and seek and contingencies supporting documentation in the form of legal opinions, correspondence


Advantages and disadvantages

hi, im a preformer and i want to know should i be myself duing an audition or should i act proper ans sweet like everyone els

Standardization of Working Papers - Auditing The ICPAK guideline states that the needs of standardized working papers may improve the effectiveness along with that they are re

Statistical sampling – Advantages a) It is scientific and defensible; b) It provides a precise mathematical statement about probabilities of being correct; c) It is efficie

Insurance Companies Authoritative documents involved as: The Insurance Act The Companies Act IFRS 4 Insurance Contracts The major legislation governing insu

Dealings with Directors and Other Parties - Sundry Debtors and Loans Dealings along with directors and other related parties: The auditor's duties are follows as: i. The revi