John Wells, CPA, is planning the audit of CVG Services Inc. As

John Wells, CPA, is planning the audit of CVG Services Inc. As a result of his risk assessment procedures, Wells has identified several fraud risks.

Required:

a. Explain in detail how Wells might respond to risks of material misstatement of the financial statements due to fraud.

b. Describe the auditors’ communication responsibilities in situations in which the auditors believe fraud has occurred.

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