Audit Responsibilities and required Audit Standard for accepting a new client:

College -A-, CPA, accepted an engagement to audit the financial statements of their sister COLLEGE -B- ., a new client. The sister COLLEGE _B_ is a publicly held retailing entity that recently replaced its operating management. Please applying audit PROCEDURES, The college -A- discovered that College -B- financial statements may be materially misstated due to the existence of fraud. Required: (a) Describe COLLEGE -A- responsibilities on the circumstances described above. (b) Describe College -A- responsibilities for reporting on Sister college -B- financial statements and other communications if College-A- is precluded from applying necessary procedures in searching for frauds. (c) Describe College -A- responsibilities for reporting on sister COLLEGE -B- financial statements and other communications if College -A- concludes that Sister College -B- financial statements are materially affected by frauds.