Auditing Case

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

John’s-For Brent to come in Saturday and start work on the Payables and finish around 35 hours. Pros-Being the right thing to do for your career, by doing what your boss asks you to do. Shows Brent’s boss He’s a team player. Shows the company that Brent places the company’s needs first and he can be counted on. Con-Brett upsets his wife by working long hours. Brent doesn’t spend time at home help wife and fix the car. Requires Brent to work long, hard hours.

Katherine-To leave John a note telling him Brent had plans with his wife and goes home. Pro- Brett makes wife and himself happy by spending time together. Con-Upsets John by missing meeting. Could possible get Brett fired from his job.

Han-To do the work and work all the hours, but on put down that work only took 35 hours. Pros-Will impress John and upper management. Will make team look good and help advance his career. Cons-Is morally wrong and goes against company policy. Could get him fired if the truth is found out. Will make Katherine upset because he is still working and not spending time with her.

Megan-Pull only 20 invoice instead of 30 invoices. Pros- will finish work in the 35 hours. Will impress John and upper management. Cons-Could get fired if found out, because this violates AICPA Code of Professional Conduct and company policies. Katherine would still be mad, because he is still working late.

Brent’s- Come in on Saturday and starts working the hours then finish the payables no matter how long it takes. Pros-The work will be finish. Brent did not have to lie or break company formal or informal policies. Cons-work my take longer than 35 hours. John and upper management may be upset and may not get raise.

2. What consequences for Brent, the auditing firm, and others involved, may arise from “eating time,” as Han suggested? Similarly, what consequences for Brent,...