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1. Identify specific fraud risk present during PwC's audits of the Lipper hedge funds. Explain how Pwc should have responded to the fraud risk factors that you identified.
2. Provide examples of important audit objectives for complex financial instruments and transactions For each audit objective that you identify, list one or more audit procedures that could be used to accomplish that objective.
3. Identify the factors that may have contributed to the alleged flaws in the audit procedures that Pwc applied in testing the year-end market values of the Lipper hedge funds' investments. Discuss specific measures that audit firms can employ to reduce the likelihood that such factors will undercut the quality of their audits.
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1. what additional information besides simply the variance may be useful to the accountant in evaluating the variance?
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