Amirul is listed on the Main Board of Bursa Malaysia and not familiar to audit hospitality business. He is not sure of specific risks involved for the business. However, he is reluctant to seek advice from his manager because he fears it may affect his performance appraisal.
During his audit with this client, he noticed that the managers of the resort often have lunch in the restaurant at the resort. The managing director of the client informed Amirul that he could also have his lunch there for free as he desired. Amirul also discovered that one of the firm’s staff owns 10,000 shares (10 lots) in the client company. This staff is not in the team to audit the company. In addition, Amirul also noticed that, one of his team member plans to disclose some of the clients’ information to his friend, a competitor in the hospitality business in Sandakan. The client’s resort are showing profitable trend for the past five years.
PS: Ans should be related with MIA professional ethics