The following situations have caused you to become concerned about the quality of the upcoming external audit: Because of the fact that the audit will not begin until February after the books have been closed, the external auditors will not be able to confirm the accounts receivable cutoff, physically examine the inventory, and examine other important procedures. I have just been advised that the auditing firm has been acquired by a larger auditing firm, and the auditor that is coming to Bovar Company will be unfamiliar with Bovar Company. One of the acquiring auditing firm’s principal partners is related to the chief executive officer (CEO) of Bovar Company. Generally accepted auditing standards (GAAS) provides three categories of standards and ten standards by which an audit should be performed. You are concerned that some of the aforementioned situations may be in violation of the GAAS standards, and you have decided to review the GAAS standards to detect any possible violations. I need help better understanding the following in 700 W. C . I must list each of these standards in their correct category. I’m having trouble in Identify those standards that you believe may be compromised by the aforementioned situations. Hoping to be better able to Describe specific actions that you believe should be taken to comply with the GAAS standards.
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