Case 6-3 Richards & Co: Year-end Audit Engagement

With referenceto the above case

1. Does it seem from the limited data that the credit memo transaction can be justified as adkustments to reported net income amounts? Explain

2.From an audit perspective, do you think the firm floowed generally accepted auditing standsecurity ards? Explain

3. Based on the limited facts presented, do you think the firm violated any provisions of the Securities Exchange Act of 1934? Explain with references to the auditors legal liability