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What should have been the auditor response to your request

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Reference no: EM131739068

Question: False Statement to a Bank Your business is in need of additional working capital. You contact your bank about a loan. A line of credit of $500,000 is tentatively approved pending you furnish audited financial statements. You meet with your auditor who is also a personal friend. Suppose you ask your auditor to add $250,000 as an account receivable. In fact, this asset does not exist. The auditor certifies the financial statements with this phantom asset. You mail the audited financial statements to the bank. What crimes have you committed? What crimes did the auditor commit? What should have been the auditor's response to your request?

Reference no: EM131739068

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