Question
Tyco Memorandum Assignment You are a staff auditor working for PricewaterhouseCoopers (PwC). You have been made aware of all of the activities at Tyco, outlined
Tyco Memorandum Assignment
You are a staff auditor working for PricewaterhouseCoopers (PwC). You have been made aware of all of the activities at Tyco, outlined in the text and in the videos. The engagement partner for the Tyco Account is Richard P. Scalzo. Based on what you have seen, it appears as if Mr. Scalzo is not concerned with the vast majority of questionable transactions that have come to light.
You have consistently been shot down when attempting to highlight the goings on at Tyco, and now believe it is time to do something more. Prepare a written memorandum to a Senior Partner (Phyllis Anderson) at PwC. In this memorandum, be sure to emphasize the transactions conducted by Tyco that raise red flags. In doing so, be sure to utilize the following:
The Fraud Triangle
Giving Voice to Values framework
Conflicts of Interest that may have arisen
Possible weaknesses in Internal Controls The Culture at Tyco
The Seven Signs of Ethical Collapse
In addition to the above, be sure to identify the possible concerns you may have regarding Mr. Scalzo and the relationship between Tyco and PwC. Consider the actions of the engagement partner when compared to the Rules of Professional Conduct, GAAS, and PCAOB Auditing Standards (p. 299). Be sure to be as complete as possible, as you suspect that your memorandum may one day be used as evidence in a case involving the liability of the firm and the individuals in it. While being a whistleblower in and of itself carries pros and cons, do not think of this purely from a legal perspective, but rather what is ethically the right decision.
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