Hiu Kai Shiu
1. What alternatives are available to Brent in regards to the audit of payables? What are the pros and cons of each alternative? Ans: For now Brent only have 3 choices, one is working at the normal pace, the pro for this choice is the work he done will be more accurate, but the con for this choice will be they out of the budget.
The next choice is “eating time”, like use his own time to finish the job. The pro to this choice is that Brent does all the work that the company required. The con is that Brent is giving his time away to the company without compensation.
Brent’s last choice is to cut corners on the work and finish on budget. The pro to this is that Brent can finish the work under the budget. The con is it may affect Brent's reputation if found out his team did not catch an act of fraud or a material misstatement.
2. What consequences for Brent, the auditing firm, and others involved, may arise out of "eating time," as Scott suggested? Similarly, what consequences for Brent, the auditing firm, and others involved, may arise out of not completing audit procedures, as Megan suggested? Ans: There will be many consequences for Brent, the auditing firm and others involved from "eating time". For Brent he would not get his pay for those extra hour that he worked. For the auditing firm, the company may think they can continue cut the budget since no matter how they cut the budget, the auditing firm still can finish them on time. Also, if the firm found out Brent use this method to finish his work, they may keep using the same way to force him to complete the job. If the audit team does not follow the audit procedures they may all lose their jobs. The company may lose the business and the reputations will be bad. 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? Ans: In my...