Please don't copy the relevant laws and regulations to me. I need to know what are the specific problems in the behavior of auditors and Hank in this question. If you can, please help me solve it in combination with the Company Act 2006 (Part 16:Audit).

The company is due a routine annual audit of its accounts and Hank, who has ulterior motives, has offered to assist. Unbeknown to his fellow directors, Hank has been supplying the Dunder Mifin Corporation with large amounts of merchandise, for which the company has not yet been paid. In addition, Hank has helped himself to substantial amount of money from the petty cash tin that he is not able to repay. The Auditor is familiar with the company, having been the auditor for several years.