Reference no: EM132727996

Nora Peak has been working at Dave Young and Associates for the past three years .Nora and her husband ,Tom , are both very interested in environmental issues and follow closely environmental issues in the media  During an audit of a pharmaceutical company Pharma Ltd for the year ended 30 June 2019 ,Nora notices that it has changed its contractor for waste management to Big Dumper Ltd. Nora has read on the internet that Big Dumper is being investigated by the local council for the level of toxic waste at one of its sites.

• The waste management contract between the Big Dumper and Pharma Ltd does not specify damages and has not been signed by the Big Dumper ,who are the cheapest waste removalist for chemicals and other materials . The contract is for three years and is for a substantial amount and Nora is concerned about the implications. The local council is very strict in its inspections for toxic waste dumping and imposes heavy fines if any of the waste is found to be improperly dumped.
• Nora raises the issue with Dave Young , the partner in charge of the audit ."This is the reality Nora " Dave says."As far as I am concerned we are responsible for the  correctness of the financial report, nothing else . Besides you do not have the qualifications to judge whether a company is being a good corporate citizen or not . We are not concerned with the business management " Nora is told to mind her audit without raising any fuss .

Required:

Problem 1: Explain the ethical issues here and a course of action for Nora .