Prepare a paper of 750 to 1,000 words not including the cover or reference page (double spaced, 12-point Arial font, 1" margins (top, bottom and both sides) based on the following information. You should upload your paper in Blackboard in Word format. The paper should have an opening paragraph and a closing paragraph, follow APA format, and have a minimum of 3 peer-reviewed references. Use the Library Research tab to help with your research. See the Rubric in Blackboard. Do not quote in your paper, but paraphrase. I want to read your interpretation of your research. Scenario The International Bank of Commerce (IBC) is an audit client of your public accounting firm. IBC is a multinational financial institution that operates in 23 countries. During the current year's audit, you have discovered the following problems: a) Improper loans were made to stockholders and other related parties. b) Loans were recorded in the books that appear to be either false or deceitful. You are especially concerned about these findings because it appears that members of senior management were aware of, and participated in, these illegal activities. In accordance with professional standards, you have communicated these illegal acts to IBC's audit committee of the board of directors. However, you are not satisfied with the committee's reaction to the situation. The chair of the audit committee thanked you cordially, but the committee took no action to investigate the activities or prevent their occurrence in the future.

REQUIRED: 1. Describe the consequences if you immediately communicated these matters directly to the SEC. 2. Describe your appropriate course of action in this situation. 3. Present arguments for and against requiring auditors to report illegal acts directly to regulatory agencies.