Post, CPA, accepted an engagement to audit the financial statements of General Company, a new client. General is a publicly held retailing entity that recently replaced its operating management. In the course of applying auditing procedures, Post discovered that General's financial statements may be materially misstated due to the existence of fraud. Required:

a. Describe Post's responsibilities regarding the circumstance described.

b. Describe Post's responsibilities to report on General's financial state- ments and other communications if Post is precluded from applying? p-968