The CPA firm of SKL, CPAs, accepted an engagement to audit the financial statements of PINS Inc. a new client. PINS is a publicly held retailing entity that recently replaced its operating management. In the course of applying audit procedures, SKL discovered that PINS's financial statements may be materially misstated due to the existence of fraud.
Required:
(a.) Describe SKL, CPAs responsibilities in the circumstances described above.
(b.) Describe SKL's responsibilities for reporting on PINS financial statements and other communications if SKL is precluded from applying necessary procedures in searching for frauds.
(c.) Describe SKL's responsibilities for reporting on PINS financial statements and other communications if SKL concludes that PIN's s financial statements are materially affected by fraud.