External Audit Concerns

Please help so that I can complete the following assignment:

The following situations have caused you to become concerned about the quality of an upcoming external audit:

1-The audit will not begin until February, 2006, after the books have been closed, so the external auditors will not be able to confirm the accounts receivable cutoff, physically examine the inventory, and examine other important procedures.

2-You have just been advised that the auditing firm has been acquired by a larger auditing firm and that the auditor coming to your firm will be unfamiliar with the firm.

3-The acquiring auditing firm's principal partner is a cousin to the CEO of your firm.

4-Some areas of control that have been of concern to the auditing department will not be audited due to workload and timing constraints.

5-Some of the methodology used in the accounting department to compile the financial statements may not comply with GAAP standards.

GAAS provides three categories of standards and 10 standards by which an audit should be performed. You are concerned that some of the listed situations may be in violation of the GAAS standards and have decided to review the GAAS standards to detect any possible violations.

List each of these standards in the correct category.

Identify those standards that you believe may be compromised by the listed situations.

Describe specific actions that you believe should be taken to comply with the GAAS standards.