Case 3.1 a Day in the Life of Brent Dorsey Essay

932 Words May 12th, 2013 4 Pages
Deana Chamberlain

Case 1

ACC 416 Seminar Two

Case 3.1

1. What alternatives are available to Brent in regards to the audit of payables? What are the pros and cons of each alternative?

Brent and Han could pull twenty invoices rather than thirty invoices and go against the audit plan. Since the account payables haven’t shown any problems in the last few years, chances are there won’t be any problems this year. Doing this they could save at least a third of the time and possibly meet the deadline. The problem with doing this is that it goes against the audit plan and potential be an issue if there did end up being a problem this year.

They could just do the audit of the account payables and say that it only took the
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If Brent gets promoted based on these shorter times he will need to keep up the pace and will be spending even less time at home and not receiving compensation for all these extra hours spent.

If Brent and Han only audit the twenty invoices rather than the thirty that is in the auditing plan for this audit and someone found this out the firm could be in violation for not performing the audit according to the step plan. If the firm is in violation, this could put Brent’s job in danger and certainly wouldn’t help him reach senior auditor status. The company being audited isn’t receiving the due care that they had expected and could look for services elsewhere.

3. In your opinion, which of Brent’s alternative courses of action would provide the best outcome and why? What should Brent do? How would you handle the ethical issues involved in this situation?

Either of Brent’s alternatives would probably work out fine for the present situation. The problem would be in the future. Changing the auditing plan would probably have the least negative outcome. The accounts payable audits have been fine for the last few years and chances are this year wouldn’t be any different. Both of Brent’s alternatives are unethical because they are both deceitful and both could cause potential problems down the road – one lie leads to another and the snowball keeps getting bigger. What Brent should do and how I would handle the situation is to talk to John. Explain to him

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