List the three actions involved if an auditor suspects a client has committed an illegal act

EBOOK:

In Introduction to Business Law, read the following:

CH 25 – Environmental Law pp. 482-500

CH 26 – Accountants’ Liability pp. 501-518

2 LECTURES

LINK OF 2 LECTURES

https://s3.us-east-2.amazonaws.com/murproduction/Online+Course+Files/CMR/CMR+108-2017/Auditing+/story_html5.html

https://s3.us-east-2.amazonaws.com/murproduction/Online+Course+Files/CMR/CMR+108-2017/Environmental+Law/story_html5.html

If you haven’t already, please review the Module Overview page, read the reading assignments, listen to the lectures/presentations.

These are three short essay questions. Answers can be found in the reading assignments and lectures. (Do not use outside resources to answer these questions.) They are due on Sunday night by 11:55pm.

Please use bullet points if appropriate. For example, if a question asks for three things, use this format to answer –

1. First point.

2. Second point.

3. Third point.

___________________________________________________________________

Question #1 (5 points):

You are the development manager for a developer of commercial distribution centers. While surveying a new development site in Butler County near Gregory Creek (which is considered a federal navigable waterway), you step into a swampy field and get your boots muddied. You also find ten rusted barrels of an unknown liquid substance in the corner of the site – two of which appear to have a leak. While accessing the contents of the barrels, you notice a small reptile that you’ve never seen before wading in a puddle.

1. Based on these facts, what specific federal environmental laws will you need to investigate in order to develop the site?

2. For each statute, give your reason why. Point back to the relevant facts that would bring that statute into consideration.

Question #2 (5 points):

1. When must an environmental impact statement be prepared?

2. What are the specific items that it must discuss?

3. In your view, why are each of these items considered necessary?

Question #3 (5 points):

1. Under Sarbanes-Oxley, list the three events that an auditor would need to report to the audit committee of the client’s board of directors. Why do you think it is important for each of these three events to be reported?

2. List the three actions involved if an auditor suspects a client has committed an illegal act. Why do you think that each of these actions are considered necessary?

Note: this isn’t a trick question. The answer to the two parts of the question are in different sections of the text and lecture

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