Question Description
Imagine that you are one of three partners in an accounting firm. Five years ago, the firm was appointed as external accountants to a successful startup company, engaged to prepare year end accounts and tax returns. The startup had begun trading with a handful of employees but now has a workforce of 200, while still remaining below the size of company requiring a statutory audit.
Due to your close relationship with the director/owner of the company and several of its staff, you find out that staff purchases of goods manufactured by the company are authorized by production managers, and
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