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November 23, 2022

Alonzo, Brian, and Charlie are partners in a small financial advising business that they had established a short time after leaving UWI Open Campus in 2016.

Alonzo, Brian, and Charlie are partners in a small financial advising business that they had established a short time after leaving UWI Open Campus in 2016. The firm was quite successful and in January 2021 they decided to take on an extra partner, Rosalyn. During an audit for partnership purposes for her admission, the auditor discovered irregularities in some of the accounts. Further investigation showed that Alonzo had been systematically stealing from the firm’s trust account since 2018 and that some $2 million in client money was missing.

Advise the partners. (5 marks)

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