Fraud: Ultro and Enormo

The tax deduction of this illegal act committed by Ultras management is committing player, so they atomic number 18 ultimately responsible for what happened. They sell automobiles that were fully depreciated on Ultras books to employees to generate an additional $50,000 in foreign currency which is illegal all with in itself.They also knew the Caribbean country in which they were operating come out of has strict laws governing the ranchers of funds to other countries, just an employee still went out of his/her way to smuggle $50,000 of foreign currency out of the Caribbean country so it could be deposited in one and only(a) of Enormous bank accounts. Management did nothing to stop this employee from smuggling the money out of the country and most likely sanction the action. Enormous and Ultras management does not give awaym to care roughly these illegal actions and does not want to take any measures to resolve these Issues In the future, even though they are fully responsible .B. ) If the CPA tighten suspects that Enormous management is Involved In noncompliance (which they are), they should communicate the theme to the next level of authority in the organization. If Enormous next level authority is not cooperating, the firm should obtain their own legal advice from outside of Enormous legal team. Since they have already committed fraud once with this illegal action, the CPA firm should take a deeper look Into Enormous financial records to see If these types of Illegal transactions eave happened In years past.C. ) I personally would report the Illegal act because It would be unethical not to even though It Is a small amount of money. Not only Is my reputation at stake, but so Is the reputation of my entire CPA firm. If I were to Ill about one companies financial records, I would be Jeopardizing any future business with other clients If I were to get caught. It Is constantly better to report everything you find In an audit so nothing comes back to neg atively continue you and your firm.