Job costing, accuracy of time records, ethics. Tax Assist provides advice on tax planning and tax return preparation to a broad range of clients. Tax Assist employs its professional staff on an hourly contract basis. The rate is $30 per hour, including all fringe benefits.

Most Tax Assist professionals work in their own homes and use the Tax Assist offices only to meet clients. Tax Assist charges clients at $65 per hour of professional labor plus any extra charges for computer time.

Mike Rotundo, the president of Tax Assist, has received complaints from several clients that they are being overcharged. He is dismayed. Tax Assist promotes itself as "Trustworthy Tax Professionals Working For You." Rotundo conducts an investigation. The hours billed to clients by two tax professionals (coded PQR and RST in the investigation) have averaged over 80 hours a \\ eek for the last six months.

Required 1. How might Rotundo gain evidence on whether PQR and RST are overstating their hours worked for individual clients?

2. What procedures could Rotundo use to ensure that the time each professional bills to each Tax Assist client is accurate?

3. How should Rotundo respond to a client who argues that the 19_5 hours reported by RST are overstated because his Tax Assist bill for 19 5 is double that of his bill for 19 4?