Livent, Inc. is a company that is very involved in the entertainment business, mainly in live theatrical productions. When dealing with a company in the entertainment industry, there are many risks that can be involved in auditing situations. A big risk that can be common is working with the higher officers of the company who are not strongly educated in the financial field. They are only familiar with the entertainment part of it and do not pay attention to a lot of the finances. It is common for the board and higher management in the entertainment field to only worry about the amount of talent provided in their product and the amount of people that are in the seats. They do not know and commonly do not want to know how much it costs…show more content… They are to write a report stating the facts and an audit report of the company as well. The non-bias report is extremely important when solving the dispute. I feel that Deloitte should have let them report the $12.5 million transaction in the third quarter. There is a reason two third parties reviewed the report and both allowed Livent to follow through with the third quarter report. Depending on how they reported other large transactions, then that’s how they should report this one as well. She felt that she had ties to both Livent and Deloitte, and these ties would be hurt either way if she reported wrong doings in the accounting practices or the auditors. No matter what she felt she was guilt because she knew about it on the Livent side and she knew what was going wrong on the Deloitte side of the battle. Either way she looked, she felt that she had some bit of responsibility for reporting the fraud for Livent and for Deloitte. After discovering the fraudulent schemes, you obviously have to report them and change the ways of the how they are practicing fraud. Clearly she knew there was fraudulent activities taking place and she could have done a lot more to help solve the situations and clear it up. There are now standards that apply to the auditing and the investigations performed by accounting firms regarding due diligence. It is required that auditors know about the
