Within the Discussion Board area, write 500–750 words that
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Within the Discussion Board area, write 500–750 words that respond tothe following questions with your thoughts, ideas, and comments. Thiswill be the foundation for future discussions by your classmates. Besubstantive and clear, and use examples to reinforce your ideas.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 Februaryafter the books have been closed, the external auditors will not beable to confirm the accounts receivable cutoff, physically examine theinventory, and examine other important procedures.You have justbeen advised that the auditing firm has been acquired by a largerauditing firm, and the auditor that is coming to Bovar Company will beunfamiliar with Bovar Company.One of the acquiring auditing firm’s principal partners is related to the chief executive officer (CEO) of Bovar Company.Someareas of control that have been of concern to the auditing departmentwill not be audited because of workload and timing constraints.Someof the methodology used in the accounting department to compile thefinancial statements may not comply with generally accepted accountingprinciples (GAAP). Generally accepted auditing standards (GAAS) provides threecategories of standards and ten standards by which an audit should beperformed. You are concerned that some of the aforementioned situationsmay be in violation of the GAAS standards, and you have decided toreview the GAAS standards to detect any possible violations. Completethe following:List each of these standards in their correct category.Identify those standards that you believe may be compromised by the aforementioned situations.Describe specific actions that you believe should be taken to comply with the GAAS standards. (Please include references)
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