1. Miles is the auditor for Swindon Ltd, a finance company that deals with financial products. The CEO of Swindon is currently investigating opportunities in emerging markets. As the external auditor, Miles has become concerned regarding the details surrounding these opportunities. Swindon has lost market share in Europe and as a result their share price has fallen by 20% during the 6 months leading up to balance date. The CEO is confident successful negotiations in emerging markets will result in significant profit growth for the company to satisfy the directors and the shareholders of Swindon. The CEO has promised sizeable bonuses to staff if the team negotiating in the emerging markets can get the job done, whatever it takes.

You have reviewed official email communications and uncovered documentation during the course of your audit that suggests money has been transferred by Swindon to external bank accounts situated in target countries where negotiations are occurring. These payments have been made while negotiations were continuing between Swindon and the clients in the emerging markets.

Using the information above, and with reference to the applicable principle(s) from APES110, indicate to Miles what you believe should be the appropriate course of action to ensure compliance with APES110.