Essay on Case 3.1 - a Day in the Life of Brent Dorsey

726 Words Mar 2nd, 2014 3 Pages
1. What alternatives are available to Brent in regards to the audit of payables? What are the pros and cons of each alternative?
Brent has the option of “eating time” as Han has suggested. This means working off the clock but he will be able to finish under budget and look good at the firm. However, this will have an adverse effect for future budgets making it seem like the audit can be completed in less time than is even possible. Also, it fails to show the accurate cost of completing the audit. Brent also has the option of lowering the number of payables tested. If he decided to do this, Brent would be able to complete his work in less time, possible under budget and allow him to spend the rest of the time with his wife. However,
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Megan’s suggestion can seriously influence the accuracy of the audit report. There may be material misstatements that go unnoticed by the auditors that otherwise would have been caught have they not skipped steps. In doing this, the auditors may issue an opinion not suitable for the company’s financials.
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?
Brent should talk to John about his issues. John may not have been aware that payables are a low-risk area and he could change the amount tested from thirty to twenty causing a decrease in man-hours. But John is the only one with the authority to make this decision. If John is unwilling to help Brent with his issues and concerns, Brent could discuss this with the manager above John, but should not test less or “eat time”. If I was in this situation I would discuss it with John because I would know that it is not in my power to make those kinds of decisions, and making those unethical decisions would have more adverse effects for the company on the audit this year and years to come that if he finished the audit over hours.
4. What could John Peters and the other auditors do to better handle the demands of career and family life?

John has created an environment that has caused his staff to consider

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