John Wells, CPA, is planning the audit of CVG Services, Inc. As a result of his risk

Question:

John Wells, CPA, is planning the audit of CVG Services, Inc. As a result of his risk assessment procedures, Wells has identified several fraud risks.
a. Explain in detail how Wells might respond to risks of material misstatement of the due to fraud.
b. Describe the auditors’ communication responsibilities in situations in which the auditors believe fraud has occurred.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...