You have met with a potential client, who informs you that all the employees and officers of his company are bonded. For this reason, he is requesting that under these conditions that you not look at his company's system of internal control so his company may reduce the cost of an audit.
Prepare a letter to the potential client explaining the following:
• Why you can or cannot honor his request.
• The reasoning for your decision.
• The potential ramifications of your decision.
• Based on your choice of action, what the perceived corporate governance of the company would be to the public.
- Understand Corporate Governance, examine and describe recent failures in corporate governance, and identify actions that the public perceived necessary to improve the quality of corporate governance.
- Analyze internal control as an integral part of an organization's corporate governance and risk management processes.