Post,CPA,accepted an Engagement to Audit the Financial Statements of General

question 5

Essay

Post,CPA,accepted an engagement to audit the financial statements of General Co.,a new client.General is a publicly held retailing entity that recently replaced its operating management.In the course of applying audit procedures,Post discovered that General's financial statements may be materially misstated due to the existence of fraud.
Required:
Describe Post's responsibilities on the circumstances described above.
Describe Post's responsibilities for reporting on General's financial statements and other communications if Post is precluded from applying necessary procedures in searching for frauds.
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 frauds.(AICPA adapted)

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Definitions:

Cross-functional Teams

Groups composed of members from different departments or areas of expertise, working together towards a common goal.

Key Problems

Fundamental or significant issues that need to be addressed to achieve goals or improve situations.

Linking Pins

Represent individuals or entities that connect different groups or levels within an organization, facilitating communication and coordination.

Interlocking Networks

A concept in organizational theory where multiple members of a board of directors serve on the boards of multiple corporations, often leading to high levels of connectivity and potential conflicts of interest.