Hal of Erhardt & Company: One Audit Senior’s Dilemma: SHRED Case Analysis
Steps 1 & 2: Read the case. Take notes.
Hal was appointed to lead an accountant team on November 15
His job was to report the audit progress
There are typically 4 positions in an audit team:
Partner-in-charge: overall the most responsible one
Manager: supervises the whole auditing process
In-charge-senior: carries out the auditing plan
Staff members: perform tasks
Frank is the partner-in-charge
Although very unfamiliar, Hal becomes one of the four seniors, but after Ricardo resigns, Hal becomes in-charge-senior, Audit repot needs to be done by January 15
There were many statements that couldn’t be provided to Hal.
Hal and Linda both encounter unusual items.…show more content… We’re focusing on one underlying issue in many cases, but there can be more than one.
1. Due to Frank’s poor work ethics, it affects Hal’s job and position as the in-charge-senior.
2. The team is not working together, nor are they on the same page.
3. An audit report for the FBA is due on January 15.
Step 6: Consider relevant information (facts) and underlying assumptions related to the problem.
The other senior auditors act in their own way rather than together.
Frank has poor work ethics.
Franks work ethics affects the whole auditing process
The deadline is near.
Step 7: List possible solutions to the problem.
1.) Hal can go ahead report his findings
It will deal with the situation with Frank
The right thing would be done/work ethics and integrity.
It makes him a little “tattle tale” for exposing Frank
It will make the auditing group look bad, as if they can not work together.
Best: The group changes and works with integrity.
Most Likely: The Frank situation will be dealt with.
Least Likely: The group will look bad.
2.) Hal can go along with his team’s report
There will be a report to present to FBA
Even though the Frank situation won’t be brought to attention, it will make the group look as if they worked together, professionally.
It is not the right thing to do
Frank will continue to act like this
Best: FBA will never find out about the issues