Consider two cases of fraud your audit firm came across in the course of its audit of Marsalis \& Associates, an Internet service provider.

- A few employees are bootlegging some of the Internet software to their friends. None of the employees is in a management position and the operations of the firm are not seriously affected.

- Management is creating dummy customers on the master file to inflate the company's financial position in an attempt to secure more favorable financing terms for the company's line of credit.

For each of these two cases, contrast the procedures you should follow upon learning of them. How do these procedures protect your interests while attempting to serve the best interests of the client's stakeholders?