Aaron, CPA, accepted an engagement to audit the financial statements of Eastern Corporation., a new client. In the course of conducting the audit and applying proper audit procedures, Aaron discovered that financial statements may be materially misstated due to the existence of fraud. Required:

(a) Describe Aaron's responsibilities for reporting on Easterns financial statements and other communications if Aaron is precluded from applying necessary procedures in searching for frauds.

(b) Describe Aaron's responsibilities for reporting on Eastern's financial statements and other communications if Aaron concludes that Eastern's financial statements are materially affected by frauds.