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Hello students, here is a question.
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Raleigh, a member of industry, is a cfo of dutch saints inc, the firm of morgan & francon.
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Cpa is performing an audit of a company for the year ended on june 30, 2016.
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Morgan & francon, cpa is about to include an audit engagement and issue their reports on june 30, 2016.
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Financial statements are, raleigh is aware of the number of irregularities existed in the company books and records that would be materially and negatively affected a company's financial position and result of operations from audited year.
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However, the firm does not ask for a raleigh, especially about these irregularities on request of any information that would relate to them.
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What is the raleigh's obligations to inform morgan & francon cpas regarding these irregularities? 4.
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The first is, the concept of don't ask, don't tell applies here.
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If the firm do not ask, raleigh has no obligation to inform them.
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Option b is, yes, raleigh must disclose the information to the firm.
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Option c is, raleigh cannot disclose the information as it would be the act of insubordination against the employer.
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Option d is, only if raleigh signed the letter, ought she be obligated and disclose the information to the audit firm.
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So, when it comes to step 1, the raleigh is the cfo of dutch seal inc, morgan & francon cpa performing an audit for the company for the year of 30th june, 2016...