Implications of the audit senior’s note

Generally 1 mark for each matter discussed relevant to money laundering:

– Definition of money laundering
– Placement – cash-based business 
– Owner posting transactions
– Layering – electronic transfer to overseas
– Secrecy and aggressive attitude
– Audit to be considered very high risk
– Senior may have tipped off the client
– Firm may consider withdrawal from audit
– But this may have tipping off consequences

Maximum marks 6