Objectives 2-2, 2-3, 2-6) The Mobile Home Manufacturing company is audited by Rossi and Montgomery, CPAs. Mobile Home has decided to issue stock to the public and wants Rossi and Montgomery to perform all the audit work necessary to Satisfy for the requirements for filing with the SEC. The CPA firm has never had a client go public before a)What are the ethical implications of Rossi and Montgomerys accepting the engage- ment? b. List the additional problems confronting the auditors when they file with the SEC as compared to dealing with a regular audit client. 2-21 (Objective 2-6) Ray, the owner of a small company, asked Holmes, a CPA, to conduct an audit of the companys 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 report 'within 3 weeks. Ray agreed to pay Holmes a fixed fee plus a bonus if the loan was granted. e audit and spent several hours Holmes hired two accounting 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; ac tlme reviewing the accounts and summarizing the data in the accounting records that support ray's financial statements. The students followed Holmess instructions and after 2 weeks gave Holmes the financial statements, which did not include footnotes. Holmes review? S gave Holmes the prepared an unqualified auditors report. The report did not refer T the statements and accounting principles or to the consistent application of such prinCiple. Required: Briefly describe each of the 10 generally accepted auditing standards and indicate how the actions of Holmes resulted in a failure to comply with each standards. Organize your answer as follow:* Brlef Description of GAAS Holmes' actions resulting in failure to comply with GAAS