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Post CA Accepted an Engagement to Audit the Financial Statements

Question 43

Essay

Post CA accepted an engagement to audit the financial statements of General Ltd., a new client.General is a publicly held retailing company that recently replaced its operating managers.In the course of applying auditing procedures, Post suspected that the financial statements were materially misstated due to the existence of irregularities.
Required:
A) Describe Post's responsibilities in the circumstances described above.
B) Describe Post's responsibilities for reporting on General's financial statements and other communications if Post is precluded from applying additional procedures in searching for irregularities.
C) Describe Post's responsibilities for reporting on General's financial statements and other communications if Post concludes that General's financial statements are materially affected by irregularities.

Correct Answer:

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A) If Post suspects that General's finan...

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