Principles of Auditing & Other Assurance Services (Irwin Accounting)
Principles of Auditing & Other Assurance Services (Irwin Accounting)
20th Edition
ISBN: 9780077729141
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 3, Problem 33QRA

Ron Barber, CPA, is auditing the financial statements of DGF, Inc., a publicly held company. During the course of the audit, Barber discovered that DGF has been making illegal bribes to foreign government officials to obtain business, and he reported the matter to senior management and the board of directors of DGF.

Required:

  1. a.      If management and the board of directors take appropriate remedial action, should Barber be required to report the matter outside the company?
  2. b.      Describe Barber’s appropriate response if management and the board of directors fail to take appropriate remedial action.
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