Below is a conversation between Mitch and you:

Mitch: Hey, guess what?!!

You: What?!

Mitch: Shhh... come here, closer

You: Whats going on?

Mitch: Dont say anything! But I just overheard Joe and Leslie discussing something about some fraud at Hillsburg!

You: Fraud?! No way.

Mitch: Yes, but be quiet! Someone ACTUALLY called the whistle-blower hotline and reported some accounting fraud. Ive already told some of the other juniors! They were all so jealous that they werent on this audit. Ive also reached out to the juniors who were on the audit last year, I hope we hear from them soon to see what they think.

You: No way. Didnt those juniors quit and go somewhere else?

Mitch: Yeah, but we keep in touch over Messenger. If this fraud turns out to be real, then this could really change the audit!

1. Identify the ethical requirements of auditors that auditors are required to comply to and identify and explain the relevant ethical requirements that were breached (6 marks)
2. List the procedures that the auditor should perform to obtain information that will enable the auditor to assess fraud risk. (4 marks)
3. Discuss managements and auditors responsibilities for the prevention and detection of fraud. (6 marks)
4. Discuss the impact of the reported fraud on Hillsburgs financial statement audit. (5 marks)