NYS How to Calculate... ops Macro Economics... No Bad Trips Ena... Law of supply i Th... Module Quiz -- Su... Chegg Study Textbook Solutions Expert Q&A Practice Search Find solutions for your homework home / study / business / accounting / accounting questions and answers / ray, the owner of a small company, asked holmes, a cpa, to conduct an a... Question: Ray, the owner of a small company, asked Holmes, a CPA, to co... See this question in the app Ray, the owner of a small company, asked Holmes, a CPA, to conduct an audit of the company s records, Ray told Holmes that an audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. Holmes immediately accepted the engagement and agreed to provide an auditor s report within 3 weeks. Ray agreed to pay Holmes a fixed fee plus a bonus if the loan was granted. Holmes hired two piccounting students to conduct the audit and spent several hours telling them exactly what to do. Holmes told the students not to spend time reviewing the controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Ray s financial statements. The students followed Holmes s instructions and after 2 weeks gave Holmes the financial statements, which did not include footnotes. Holmes reviewed the statements and prepared an unqualified auditor s report. The report did not refer to generally accepted accounting principles or to the consistent application of such principles. REQUIRED: Briefly describe each of the 10 generally accepted auditing standards and indicate how the action(s) of Holmes resulted in a failure to comply with each standard. Best Answer 1 Was this answer helpful