viand petroleum inc : initial audit engagement and fraud risk case for a specialized industry

2-5. If Paige CPA discovers that a number of material contracts have been awarded in a fraudulent manner, what would be the auditors' responsibility for reporting the matter? How would your answer be different if the contracting improprieties were found to be immaterial? Be specific regarding the persons or groups to whom the communications should be targeted under each scenario.

2-6. Regardless of whether you are inclined to agree or disagree with Nick Fraudus' point of view, do you believe that Paige CPA can still perform a high-quality audit? Is a fraud specialist needed on its audit engagement team? Explain.