Welco company case study 3 1.

During the audit do Welco Company, the auditor noted on vouch items in travel expense that a receipt for $750 for the dinner of a salesman with a prospective customer seemed excessive. Upon closely examining the receipt, it seemed like a 1 had been changed to a 7 Changing the receipt from $150 to $750. Upon examining other items, two other dinner bills appeared to have been altered similarly. ye, he auditor decided that at most a few thousand dollars were involved for a multi-billion dollar company the amount was clearly not material. since the risk of material fraud appeared remote, no additional work was done.

What is the auditors obligation, if any, to communicate this matter under SAS No. 99 ?

2.Assuming that the individual involved was the senior Vice President of sales , what is the auditors obligation, if any, to communicate the matter. Under SAS No. 99?