Reporting on Compliance in Conjunction with an Audit Engagement. Prescott is conducting the audit of the financial statements of Mueller. In addition to the financial statement audit, various union groups have requested that Mueller provide evidence of compliance with the Fair Labor Standards Act (FLSA) of 1938. When discussing this matter with Prescott, he indicated that he could expand the auditors' report to reference compliance with the FLSA. Required: a. Under generally accepted auditing standards, is Prescott permitted to evaluate compliance with FLSA? If so, what procedures beyond those in a financial statement audit should he perform? b. What are the options available to Prescott for reporting on compliance with the FLSA in conjunction with his audit of the financial statements? c. What matters should Prescott address with respect to compliance with the FLSA in his report (assume that a separate report on compliance is prepared)? (Do not write the actual report).