Auditing Cases 3.1

1. Alternatives:

1. Skip a few audit steps (Megan’s suggestion) by pulling less invoices

Pros-The work would be completed in less time allowing Brent and Han to come in under budget which will please John.

Cons-It is very unethical. Beginning to cross ethical lines this early in his career could set a bad precedent for Brent. Also, the audit would not be complete and errors could go undiscovered which could lead to trouble for both Northwest and the auditing firms if they are uncovered later.

2. Talk to John about your conflicting opinions

Pros-John could offer acceptable suggestions to Brent from his past experiences. John could also realize that what he is asking is unreasonable and change his audit plan. He might even offer to put in more if his time to help Brent and his team meat the deadlines under budget.

Cons-John could get angry with Brent and give him a poor performance review. John could also replace Brent on the auditing team which could have negative consequences for Brent’s future with the auditing firm.

3. Brent could “eat time” (Han’s suggestion)

Pros-The audit could be completed under budget which would look good for John who could give Brent a positive performance review helping Brent’s future with the firm. Recording the correct time could change the allowed time for the audit in the future so these issues would not occur each year Northwest was audited.

Cons-Brent would spend more time working which would upset his already upset pregnant wife even further. Eating time is also unethical; you are falsifying the audit records saying you completed the audit in less time than you actually did. That is probably why the audit is on short on budgeted time.

4. Ignore John and perform the audit completely and record all hours worked

Pros-This is the honest, ethical thing to do. Brent would be setting a good precedent for how he will conduct himself throughout his career. He will not have to worry about any mistakes...