You are a junior accountant with Factional Ltd, a large, publicly-listed company operating in the high-tech sector. Factional Ltd has recently appointed a new chief Executive Officer (CEO), Mr Magnus Bouche, who is due to take up his appointment very shortly. Last night, at the invitation of a friend, you attended a prestigious charity function which, coincidentally, was also attended by Mr Bouche. At one point during the night, you found yourself standing quite close to (but unobserved by) Mr Bouche and overheard a part of his conversation with friends, including his comment that the first thing he intended to do as CEO of Factional Ltd was to “take a bath”.
Your report will provide the basis for Ms Golightly’s decision on whether the matter should be brought to the attention of Factional Ltd’s audit committee (a sub-committee of Factional Ltd’s board of directors).
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