BAEKERDUD In the public aocounting profession, audit engagements are typically structured as "xed\" fee arrangements {i.e. $1,000,000 for the 2019 audit]. Absent some unusual circumstances or a change in the scope of the work, the xed fee is agreed to prior to the audit being performed and it does not change. lClaccasionally, when oonducting certain audit relatedwork such as initial public offerings, debt offerings, comfort letters, or other special projects, an auditor and a client will agree to an hourly fee billing arrangement {i.e. $300 per hour]. SCENARIO During one such auditrelated project where a xed fee arrangement was being employed, a local audit rm and its audit team worked tirelessly to help its client complete an initial public offering of ifs common stock. The project was difcult and the audit team worked long hours, but ultimately nished the neoessary work and the client listed its stock on the NYSE. The client was extremely happy with the audit team's work and paid the fee invoice without question when received. A month after the completion of the project, it came to the attention of the audit partner responsible for serving the client that her seoond year staff person misreported his hours incurred during the project to the rm. As a result of the error, the audit rm meaningfully overcharged the client for the work performed. After a limited investigation, it became apparent that the staff person intentionally overstated his hours worked. ASSIGNMENT In one page or less answer the following questions. Print your one page [singlespaced] on the back of the page used for Leigh Ann Walker's Story Case Study and bring it to class on September 4, 2019 prepared to discuss the situation and submit your paper. 1. If you are the partner in charge of the project and responsible for serving the client, what do you do and why? 2. Does your response as the audit partner change if you did not identify the error in the billings until a year after the project was complete? 10 years after the project was complete