Illegal acts, Auditing

ILLEGAL ACTS

Auditors may uncover criminal offences committed by a client or an employee of the client. This puts them in a difficult place, though the auditor must act carefully and correctly and if necessary, take legal advice.  The auditor should not commit a criminal offence himself. It is sensed that he would have committed an illegal offence if:

  • He advises his client to commit a criminal offence;
  • Aids the client in devising or examining a crime;
  • If he agrees with a client to conceal or destroy evidence or mislead the police with false statements;
  • If he knows that his client has committed an arrest able offence and tries to impede his arrest and prosecution. Impede does not include refusing to answer questions or refusing to produce documents without the client's consent;
  • If he knows that his client has committed an offence and agreed to accept consideration to withhold information;
  • If he knows that the client has committed treason and fails to report the offence to the proper authority.

 

Posted Date: 12/3/2012 5:06:04 AM | Location : United States







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

Write discussion on Illegal acts
Your posts are moderated
Related Questions
1. Why is studying Auditing different from studying other accounting topics? 2. How might understanding auditing concepts prove useful for consultants, business managers, and other

How would you value the Goodwill

Records kept by AUDITOR of procedures applied, tests performed, the information obtained and pertinent conclusions reached in the course of the AUDIT. (2) Any records developed by

Building Societies - Specialized Audit Situation Building Societies are organisations that exist to offer a savings and investment intermediate to the public and to lend to pe

Share and deposits Shares may consist of subscription shares and paid up shares. Interest on shares might be credited to the accounts rather than being paid to ensure proper co

Meaning of the auditing definition a) Orderly and efficient manner: An organization which is run in an orderly and proficient manner is able to satisfy the requirements o

Documentation of Representations by Management The auditor would ordinarily involve in audit working papers evidence of management's representations in form of a summary of or

Disclosures about Inventories - IAS 2 IAS 2 specifies disclosures about inventories. In a large manufacturing company, no article in the balance sheet appears verification

Current Audit File The current audit file might include inter alia: a) A copy of the audited financial statements and any report prepared as a result of audit work carried out

General advantages and disadvantages of joint audits Advantages: All work and fees are welcome to audit firms. An opportunity to closely inspect the auditing methods