Contemporary Auditing 10th Edition by Michael Knapp

Exercise 69

Maria Messina testified that when she learned of the accounting irregularities at Livent shortly after becoming the company's CFO she felt "guilty by association," which prevented her from revealing the fraud to regulatory or law enforcement authorities. Explain what you believe she meant by that statement. Place yourself in Messina's position. What would you have done after discovering the fraudulent schemes affecting Livent's accounting records