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1. Where the auditor discovers that the client business is involved in criminal activities that may be harmful to society, e.g. terrorist activities.
2. In the event that the client company has not filed tax returns for a considerable period of time and management is not taking any steps to meet the requirement despite the auditor‘s recommendations.
3. In a legal suit filed against the auditor by the shareholders, the auditor has the right, in his defense, to give information about the company to his lawyer, in order to save his case.
4. If the auditor feels as if his life is in danger from third party attached to the client company, as a result of his audit work which may end up exposing the third party, he should report the matter to the police, giving detail about his relationship with the client.
5. The auditor has the duty to report the client to the local authority, if it is involved in dumping toxic wastes that may endanger the public. This is a step he will take if management is not responsive to his recommendation with respect to the same.
Wilfykil answered the question on February 22, 2019 at 12:31
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