question archive Post, CPA, accepted an engagement to audit the financial statements of General Company, a new client
Post, CPA, accepted an engagement to audit the financial statements of General Company, a new client
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Post, CPA, accepted an engagement to audit the financial statements of General Company, a new client. General is a publicly held retailing entity that recently replaced its operating management. In the course of applying auditing procedures, Post discovered that General's financial statements may be materially misstated due to the existence of fraud.
Required:
a. Describe Post's responsibilities regarding the circumstance described.
b. Describe Post's responsibilities to report on General's financial statements
and other communications if Post is precluded from applying necessary procedures in searching for fraud.
c. Describe Post's responsibilities to report on General's financial statements and other communications if Post concludes that General's financial statements are materially affected by fraud.
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