Cpa responsibility

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Molly, a CPA in public practice is on the board of directors of a local bank. One of Molly's clients has a $100,000 ninety day loan from the bank. Molly, while preparing the clients tax return finds that the client's revenues from their business is down significantly. Any further deterioration may very well result in the client's bankruptcy. At a meeting of the banks' directors Molly finds out that her client has requested that the bank renew their loan of $100,000 for another ninety days. From the comments of the other board members in discussing the client's request it is obvious that they are unaware of the client's current business conditions. Just before the vote is taken as to renew the loan the chairman who is aware of Molly's relationship to the client turns to her and asks her for her comments. What are Molly's responsibilities? What are the issues here? Advise Molly on what she should do and why. Remember you need to have solid research to defend your position.

Reference no: EM1358258

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