Case Analysis ABC Corporation - Write a two to three page discussion paper
ABC Corporation is a large multinational audit client of your CPA firm. One of ABC's subsidiaries, XYZ, Ltd. is a successful electronics assembly company that operates in a small Caribbean country. The country in which XYZ operates has very strict laws governing the transfer of funds to other countries. Violations of these laws may result in fines or the expropriation of the assets from the company.
During the current year, you discover that $50,000 worth of foreign currency was smuggled out of the Caribbean country by one of XYZ's employees and deposited in one of ABC's bank accounts. XYZ's management generated the ...view middle of the document...
Your paper should include:
a. A discussion on the implications of this illegal act by XYZ's management
b. A description of the courses of action that are available to your CPA firm regarding this matter
c. A statement of your opinion on the course of action that is appropriate with an explanation of why you think it is appropriate
* AICPA, Professional Standards, Volume 2, Commerce Clearing house, Statement on Quality Control Standards, Section QC 10.
* AICPA, Statement on Auditing Standards No. 99. "Consideration of Fraud in a Financial Statement Audit" (New York, 1966) AU 316.
* AICPA, Statement on Auditing Standards No 54 "Illegal Acts by Clients" (New York, 1988) AU 317.
* FASB Statement No 5, “Accounting for Contingencies,” paragraph 8-12.
Your response should be a two to three page Microsoft Word document, double-spaced, and in 12 pt Times New Roman or Courier New font. Additional readings and academic research should be a major component of all graduate level work. Students are expected to supplement required textbooks and resource material readings into...