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However, if he suspected something was amiss he should have discussed it with the Levi's to let them know there may be a problem. In addition to preparing tax returns for Howard Street Jewelers, alternately assume that the CPA (a) audited the business's annual financial statements. If the CPA were their auditor, he would have a responsibility to bring any hint of fraud to the attention of the audit committee. (b) reviewed the annual financial statements. If the CPA were hired to review the annual financial statements, he would be responsible to inform the Levi's of any discrepancies he may find...
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