If top management is suspected then refer to if

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Unformatted text preview: top management is suspected, then refer to If corporate governance bodies only. corporate Legal counsel or other appropriate external Legal experts. experts. 5. 5. Assume that the act is not isolated; 6. Determine how the act slipped through the internal Determine control system; control 7. Broaden audit procedures to consider the possibility Broaden of more acts of this nature; of 8. Conduct additional audit procedures; 9. Evaluate the results of expanded audit procedures; 10. 10. Consult with legal counsel and possibly corporate Consult governance bodies to estimate the potential impact of the irregular and illegal acts, taken as a whole, on the subject matter of the engagement, audit report and organization. matter 11. Report all facts and circumstances of the irregular and Report illegal acts (whether suspected or confirmed) if the acts have a material effect on the subject matter of the engagement and/or the organization. engagement 12. Distribute the report to appropriate internal parties, such Distribute as managers who are at least one level above those who are suspected or confirmed to have committed the acts, and/or corporate governance bodies. and/or Regulatory & Legal Issues Regulatory Auditors need a working knowledge of Auditors regulations and laws so they at least can determine when to refer matters to legal counsel. counsel. Legal Contracts Legal A contract is an agreement between or contract among two or more persons or entities (businesses, organizations or government agencies) to do, or to abstain from doing, something in return for an exchange of consideration. – Law provides remedies, including recuperation Law of losses or specific performance. of Three Elements Three Offer – Clearly identify subject matter of the agreement – Completely describe services including time, Completely place & quality place – Identify goods including quantity (Material Identify term under UCC) term Three Elements Three Consideration – Statement of what the offeror expects in return Statement from the offeree. from Thre...
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