An Agreement To Perform Together An Illegal Act

.12 If the statutory auditor concludes, on the basis of the information gathered and, where appropriate, consultation with a lawyer, that an unlawful act has taken place or is likely to have taken place, the statutory auditor should take into account the impact on the financial statements and its impact on other aspects of the audit. On the other hand, civil courts impose private rights. Civil proceedings result in financial compensation and other remedies to recognize these rights: the private interests of the members of society are recognized. This is necessary for society to function. All illegal behaviour is serious. Some crimes are more serious than others. Those that include fraud – deliberate deception – are at the top of the list. (See AS 2805, Management Representations.) The statutory auditor does not need further procedures in this area if no specific information is available on possible illegal acts. And no old illegal activity will make an agreement illegal. The difference between an inconclusive agreement and an unenforceable contract can be considerable. Laws LJ recognized that illegality and contract law were “notoriously gnarled territory.” Under customary law, a distinction has been made beforehand between cases in which the offender intended to carry out illegally from the date of conclusion of the contract and cases in which the intention to carry out illegally was advanced only a posteriori. .

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