please answer these questions as soon as possible

Big J Movers Lid. is owned by Jacques Tetreault. The company used to be profitable but several new small companies have started to compete with Big J, offering very low prices that Big J cannot match. Jacques thinks he can make his company profitable again if he eliminates his competitors, which will allow him to raise prices. He therefore decided to purchase one of his competitors each year for the next four years. The first company he bought was a proprietorship called Cem's Trucking. Jacques has hired your audit firm to review the accounting system and controls at Cem's Trucking to see what changes are needed before he can integrate it into Big J Movers. Jacques hopes there are not many problems You interviewed the owner of Cem's Trucking and the company's bank manager and learned the following information The company has customers in both Canada and in the United States, and the owner was not very knowledgeable about customs fees that must be paid and regulations that have to be followed when transporting goods across the borders. Also, the owner, Cem often simply took any cash that the business earned and spent it on personal items, instead of taking a salary from the business. There is only one office staff members besides Cem: Cem's cousin, who does all of the bookkeeping. His cousin is not an accountant but has taken some accounting courses. Cem explained that controls at Cem's Trucking are strong because: . He can trust his cousin completely. (Having honest employees is important for effective control.) . Cem personally checks all of the bookkeeping entries, making any corrections he feels are necessary. . At the year end, Cem takes the bookkeeping records to a tax preparer who prepares his tax return. Required Discuss the inherent risk at Cem's Trucking based on the above information. Include six observations in your answer. (each observation is 2 marks, total: 12 marks)Indicate whether you agree or disagree with the following statements and explain your reasoning. a) Mat Torun feels that an internal auditor that reports to the chief financial officer of the company can be as independent as an auditor that reports to the audit committee. (2.5 marks) b) Judy discovered a very material overstatement in the financial statements of Humphrey's Holistic Medicine. She felt that the misstatement would have an impact on the decisions of users of the financial statements, and indicated to her audit senior that she would be including it as an "emphasis of matter" paragraph in the audit report. (2.5 marks) c) To ensure that it is independent of prospective and continuing clients, an audit firm must review the threats to independence, and make certain that safeguards are put in place to limit or remove those threats. (2.5 marks) d) The final stage in the client acceptance and continuance decision process involves assessing independence threats. (2.5 marks)