Question
All audits should have a well-developed time budget, which is used to determine the audit fee. Suppose your client representative reviewed the time budget and
All audits should have a well-developed time budget, which is used to determine the audit fee. Suppose your client representative reviewed the time budget and noticed a significant amount of time is being allocated to inventory observation. To reduce audit fees, she proposes a significant reduction in time by offering to provide a representation letter regarding the inventory balance. Please discuss the sufficiency of this audit evidence. Discuss and explain the additional information you will need to determine how to respond to the client.
Be sure to support your statements with logic and argument, citing any sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers and instructors posts, as well.
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