: Enormo Corporation is a large multinational audit client of your CIA firm. One of Enormos subsidiaries, Ultro, Ltd., is a successful electronics assembly company that operates in a small Caribbean country. The country in which Ultro operates has very strict laws governing the transfer of funds to other countries. Violations of these laws may result in fines or the expropriation of the assets of the company. During the current year, you discover that $50,000 worth of foreign currency was smuggled out of the Caribbean country by one of Ultro s employees and deposited in once of Enormos bank account. Ultros management generated the funds by selling company automobiles, which were fully depreciated on Ultros books, to company employees. You are concerned about this illegal act committed by Ultros management and decide to discuss the matter with Enormos management and the companys legal counsel. Enormos management and board of directors seemed to be unconcerned with the matter and expressed the opinion that you were making far too much of a situation involving an immaterial dollar amount. They also believe that it is unnecessary to take any steps to prevent Ultros management from engaging in illegal activities in the future. Enormos legal counsel indicated that the probability was remote that such an illegal act would ever be discovered, and that if discovery occurred, it would probably results in a fine that would not be material to the clients consolidated financial statements. Your CIA firm is ready to issue its opinion on Enormos consolidated financial statement for the current year; you are trying to decide on the appropriate course of action regarding the illegal act. Required: a. Discuss the implications of this illegal act by Ultros management. b. Describe the course of action that are available to your CIA firm regarding this matter. c. State your opinion as to the course of action that is appropriate. Explain