Case 3.1 Brent Dorsey

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Case 3.1 – A Day in the Life of Brent Dorsey, Staff Auditor Professional Pressures

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

- Brent could refuse to work the extra hours – Pros: Brent will improve his strained relationship with his wife and remain morally correct by not reporting dishonest working hours on the engagement. Cons: Brent could cause the engagement to come in over budget, which will make John look bad and could cost John his management promotion. Brent may also receive a less positive evaluation by John after the engagement is over, this could hold him back from future promotions with the company which will affect his income and ability to provide for his growing family. He may later be terminated over the refusal if John can find a reason to let him go.

- Work the extra hours and “eat the time” – Pros: Brent will please John by helping the team meet budget requirements on the engagement, which will lead to favorable evaluations. This will help his future in the firm and his earnings potential for supporting his growing family. Cons: Working the extra hours will further strain relations with his wife, and could even end his marriage eventually, as it leads to more engagements with overtime in the future. He will be acting unethically by reporting dishonest hours.

- Pull only 20 instead of 30 invoices – Pros: Could save enough time that they might honestly come in under the time budget, thereby avoiding the need to be dishonest with recording hours worked. Cons: Still requires working the extra hours and harming relations with his wife. More importantly, this violates several Codes of Conduct rules (discussed below) that expose the firm and the auditors to liability.

- Work the extra hours and charge the time to the engagement – Pros: Follows orders by working the extra hours while still remaining ethical and honest in reporting correct hours

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