Hal of Erhardt SHRED case analysis
Steps 1 & 2: Read the case. Take notes.
Hal was appointed to lead an accountant team on November 15
His job was to report the audit progress
There are typically 4 positions in an audit team:
Partner-in-charge: overall the most responsible one
Manager: supervises the whole auditing process
In-charge-senior: carries out the auditing plan
Staff members: perform tasks
Frank is the partner-in-charge
Although very unfamiliar, Hal becomes one of the four seniors, but after Ricardo resigns, Hal becomes in-charge-senior,
Audit repot needs to be done by January 15
There were many statements that couldn’t be provided to Hal.
Hal and Linda both encounter unusual items.
Step 3: Write the problem statement.
A. First list the symptoms of the overall problem that’s causing the symptoms.
The other senior auditors act in their own way rather than together.
Frank has poor work ethics.
Franks work ethics affects the whole auditing process
The deadline is near.
B. Then name the main underlying issue—the core problem
Due to Frank’s poor work integrity, it affects Hal’s job and position as the in-charge-senior.
C. Write the problem statement. State the most significant problem in 3 to 5 sentences.
Hal, the auditing in-charge-senior of Erhardt & Company, was assigned to audit the FBA Group Ltd. As a result of Frank’s, the partner-in-charge, poor work ethics, Hal’s position as the in-charge-senior and the whole assignment gets jeopardized. Hal must approach Frank within the next day to straighten things out and to talk to him about the team’s findings, otherwise, Hal’s positions, the firm, and FBA will face bad consequences.
Step 4: State an objective for the manager involved.
Short-term objective (s):
1. To straighten things out with Frank
2. To present the teams findings and to make sure the auditing team is on the same page.
Long-term objective (s):
1. To present a successful report to FBA.