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Responsibility of CPA

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Please read the attached case study and answer:

When Mrs. Levi informed the CPA of her suspicions regarding Betty, what responsibilities, if any, did the CPA have to pursue this matter? In addition to preparing tax returns for Howard Street Jewelers, alternately assume that the CPA (a) audited the business's annual financial statements, (b) reviewed the annual financial statements, and (c) compiled the annual financial statements.

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The solution explains responsibility of CPA. The expert audits the business's annual financial statements, reviews the annual financial statements and compiles the annual financial statements.

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Detection of Fraud through Audit Procedures

The responsibility of CPA is detailed as following; he has to take action as per following steps:

1. Verify all purchases by purchase Bills of Howard Street Jewelers and see whether they have been duly recorded in Purchase Book. Check whether the Purchase has been recorded in personal ledger of supplier from whom the item have been purchased along with corresponding entry ...

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