Current Attempt in Progress

Your firm is the auditor of Trojan Trading Ltd$.$ The audited financial statements for the year ended December $31,2023,$ show the

company's revenue was $$5$ million and the profit before tax was $$320,000.$ The part of the working papers that records audit work on

the bank reconciliation at December $31,2023,$ noted cash receipts of $$14,000$ recorded in the cash book before the year end that

were not credited to the bank statement until a week after year end. No further work was carried out because the amount was not

considered material, and that conclusion was noted in the audit working papers. In February $2024,$ the company investigated delays in

depositing cash receipts and discovered a fraud of $$36,000.$ The fraud was carried out by the cashier who was responsible for

depositing all receipts and preparing the bank reconciliation.

Should this have been reported? If so$,$ to whom?