Susie is an auditor with XYZ Audit firm. The Senior Audit member has told her that all fieldwork must be completed by the end of the week. Susie knows that corners have been cut and certain tests not completed due to the time constraints. The integrity of the firm could be compromised. What should Susie do?
A) Do nothing.
B) Talk with the chain of command of the client to see that her concerns are dealt with.
C) Follow the chain of command of XYZ to see that her concerns are dealt with.
D) Talk with a reporter from the Wall Street Journal.

Question

Quizplus · Accepted Answer

Susie should follow the chain of command of XYZ to report her concerns. As an auditor, it is her professional duty to ensure the accuracy and integrity of financial statements of clients. Reporting to the chain of command of the client may compromise the independence of the auditor, and talking to a reporter would be a violation of confidentiality and could harm the reputation of both the client and the audit firm. Susie needs to report her concerns internally to allow the firm to take appropriate action and prevent any further errors or unethical practices.

Susie Is an Auditor with XYZ Audit Firm