SAS No$.31,$ "Evidential Matter: identifies five management assertions that underlie a set of financial statements. Which of these assertions were relevant to Paragon's construction projects? For each of the assertions that you listed, describe an audit procedure that Arthur Andersen could have employed to corroborate that assertion. $2.$ The SEC referred to several "audit failures" that were allegedly the responsibility of Michael Sullivan. Define what you believe the SEC meant by the phrase "audit failure:$$ Do you believe that Sullivan, alone, was responsible for the deficiencies that the SEC noted in Andersen's $1997$ audit of Golden Bear? Defend your answer. $3.$ Sullivan identified the $1997$ Golden Bear audit as a "high$-$risk" engagement. How do an audit engagement team's responsibilities differ, if at all, on a high$-$risk engagement compared to a "normal" engagement? Explain. $4.$ The AICPA has issued several Audit and Accounting Guides for specialized industries. Do auditors have a responsibility to refer to these guides when auditing clients in those industries? Do these guides override or replace the authoritative guidance included in Statements on Auditing Standards? $5.$ Was the change that Paragon made in applying the percentage$-$of$-$completion accounting method a "change in accounting principle" or a "change in accounting estimate"? Briefly describe the accounting and financial reporting treatment that must be applied to each type of change.