Question: need help please to solve each solution please a) You are auditing a company as of 12/31/20X1. The client is involved in pending or threatened

need help please to solve each solution please
a) You are auditing a company as of 12/31/20X1. The client is involved in pending or threatened litigation as of 12/31/20X1. When drafting the attorney letter to be sent to the Law Firm handling the litigation, one option is for the auditor and client personnel to write & include a description of pending or threatened litigation in the attorney letter. What is a more practical option?
b) You are performing an annual audit of a company with a December 31, 20X1 year-end. Your firm is planning to complete the audit on March 1, 20X2 and release the report shortly thereafter. On February 15, 20X2, two material subsequent events occur:
There was a significant fire at one of the companys manufacturing plants, and
One of the companys customers files for bankruptcy; your client had an accounts receivable of $300,000 from this customer at 12/31/20X1
What impact, if any, will these two subsequent events have on your clients 12/31/20X1 audited
financial statements?
c) You are a CPA employed as an accountant for a large manufacturing company. Each month, you assist in preparing the companys actual monthly GAAP financial statements. Your boss tells you that one way or the other, you must make the actual months GAAP income exceed the months budgeted income. The way you are told to do this is to prepare the following journal entry in an amount which causes actual income to exceed budgeted income:
Dr. Inventory
Cr. Cost of Goods Sold
If you go along with this, are you violating any AICPA rules? If yes, which AICPA rule are you violating?
d). You are in a job interview for an accounting position. The interviewer notices you took this Principles of Auditing course. The interviewer asks you to briefly respond to the following 3 questions:
A. What is an audit? (3 points)
B. How are fees set on an audit? (2 points)
C. There are a number of major challenges facing the audit profession describe one.

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