What is the auditor obligation

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Reference no: EM132714213

Question - During the audit of Welco Company, the auditor noted in vouching items in Travel Expense that a receipt for $750 for the dinner of a salesman with a prospective customer seemed excessive. Upon closely examining the receipt, it seemed like a 1 had been changed to a 7-Changing the receipt from $150 t $750. Upon examining other items, two other dinner bills appeared to have been altered similarly. Yet, the auditor decided that at most a few thousand dollars were involved for a multi-billion-dollar company-the amount was clearly not material. Since the risk of material fraud appeared remote, no additional work was done.

1. What is the auditor's obligation, if any, to communicate this matter to whom and how?

2. Assuming that the individual involved was the senior vice president of sales, what is the auditor's obligation?

3. What are appropriate plenty you recommend?

Reference no: EM132714213

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