1. What alternatives are available to Brent in regards to the audit of payables? What are the pros and cons of each alternative? a. One alternative that Brent go do is ask the accountant from Northwest Steel Producers to pull the needed invoices and have them ready in a reasonable time period for review. By doing this it would save Brent time from searching for specific invoices and leave him more time to focus on other audit issues. b. Brent could do as subjected and only pull a minimum amount and take the change of being caught. The pros of this would be that Brent would be able to complete the accounts payable a little sooner but the cons would be that the audit would not be complete and the audit report could have the possibility of not be accurate. I would not recommend this alternative. c. Brent could audit all the payables as required and follow the AICPA regulations. The pros would be that Brent has not violated any regulations and would maintain his job and maintained his ethical responsibilities. The cons would be that Brent would have to work harder and spend more time working and less time with his wife. 2. What consequences for Brent, the auditing firm, and others involved, may arise from “eating time,” as Scott suggested? Similarly, what consequences for Brent, the auditing firm, and others involved, may arise from not completing audit procedures, as Megan suggested?
The consequences from “eating time” as Scott suggested would cause production reports to be incorrect and also would suggest that in the future the CPA firm could possibly perform the audit on a tighter schedule next year.
Now if Brent was to follow Megan’s suggestion the auditing firm would not be providing the audit review that is expected and the audit report would be considered incomplete.
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...