Paradox, INC case.4

1. What are your responsibilities to make sure the financial statements are free material misstatements?

2. How will SAS No. 99 affect the procedures you will perform for audit ?

3. SAS No. 99 requires you to conduct a discussion among engagement team personnel. Based on the background information provided, what insights would you share with other audit team members? Describe your insights in terms of the three characteristics of fraud, incentive, and rationalizati.

4. When performing field work, you find that in responding to accounts receivable confirmations, a customer notes. That the receivables relates to a. Purchase that was made under the companys new extended return policy and the customer is still deciding whether to keep the items purchased. How does this new. Information affect your fraud risk assessments? how should your respond to this situation?