eating as a serious offence. Therefore, be forewarned!

Scenario Audit Time Budget Pressure

Rehab after completing her bachelors degree in Accounting has joined the CPA firm ACE Auditing & Consultancy Services as an Audit Trainee on 01st July 2020. Rehab has been assigned to the audit of Star LLC. The audit supervisor Jawahar was informing Rehab that she is taking more time in completing the audit work assigned to her and because of her delay the audit team is facing with the problem to complete the audit within the budgeted time period.

Last week the partner in charge of the firm Mr. Waleed have asked Rehab to meet him in his office. During the meeting, the following conversation took place:

Mr. Waleed:

Rehab:

Mr. Waleed:

Rehab:

Mr. Waleed: Rehab:

Rehab, the reason why I asked you to see me is the time record sheet. We found that your time record sheet indicate that it takes you 50 percent longer time to complete the audit work than the other colleagues in your audit team.

I understand, but Mr Waleed, I just joined three months before and still learning on the job.

Thats true, but you know that we have fixed budget for this audit. Every hour you spend more than the budgeted time will cost money for the firm. If this continues, we must bill extra to the client whose audit you work on, which the client will be reluctant accept. We do not want to lose our clients.

I do understand Mr. Waleed, However, it is taking more time than I expected too. If I am to cut down the time it will affect the quality of the audit as I am unable to reconcile in the given short period.

I would never compromise the quality of our audit. I am trying to figure out why it takes you so much longer than other staff members.

If this is the case, am I allowed take some of the work home at night and on weekends, complete it. This will not charge the firm or the client for the extra time I am spending on the audit.

Mr. Waleed was surprised by the Rehabs openness. He valued the character of Rehab, but he could not provide an answer as yes for Rehabs request. He concluded the meeting by stating that it is Rehabs call to decide on how to increase her productivity on audits. As her progress on the discussed matter decides her future with the firm.

With the effort to deal with the problem, Rehab approached Muna, one of the senior auditors in her team and asked whether Muna had faced such problem. Muna stated, Yes Rehab, I

initially found it difficult to complete my work within the budgeted time. Later, I handled it by ghost ticking. (Documenting audit procedures that have not been completed is called the Ghost ticking). Further she insisted Rehab to do the same to overcome the problem as no one will be watching.

Assume you are in the position of Rehab; Explain how you would be reacting to the situation in the given scenario.

Your report should:

i. Discuss your (Rehabs) ethical obligation as an Audit Trainee,

ii. Evaluate using the ethical theories (consequential, non-consequential and virtue),

whether to take work home to complete and not to charge for the job or to involve in

ghost ticking

iii. Discuss your approach in explaining your stance to Mr. Waleed in your next meeting

with him regarding the problem in the given scenario.

(maximum

Scenario Audit Time Budget Pressure

Rehab after completing her bachelors degree in Accounting has joined the CPA firm ACE Auditing & Consultancy Services as an Audit Trainee on 01st July 2020. Rehab has been assigned to the audit of Star LLC. The audit supervisor Jawahar was informing Rehab that she is taking more time in completing the audit work assigned to her and because of her delay the audit team is facing with the problem to complete the audit within the budgeted time period.

Last week the partner in charge of the firm Mr. Waleed have asked Rehab to meet him in his office. During the meeting, the following conversation took place:

Mr. Waleed: Rehab:

Mr. Waleed: Rehab, the reason why I asked you to see me is the time record sheet. We found that your time record sheet indicate that it takes you 50 percent longer time to complete the audit work than the other colleagues in your audit team.

Rehab: I understand, but Mr Waleed, I just joined three months before and still learning on the job.

Mr. Waleed :Thats true, but you know that we have fixed budget for this audit. Every hour you spend more than the budgeted time will cost money for the firm. If this continues, we must bill extra to the client whose audit you work on, which the client will be reluctant accept. We do not want to lose our clients.

Rehab: I do understand Mr. Waleed, However, it is taking more time than I expected too. If I am to cut down the time it will affect the quality of the audit as I am unable to reconcile in the given short period.

Mr. Waleed : I would never compromise the quality of our audit. I am trying to figure out why it takes you so much longer than other staff members.

Rehab: If this is the case, am I allowed take some of the work home at night and on weekends, complete it. This will not charge the firm or the client for the extra time I am spending on the audit.

Mr. Waleed was surprised by the Rehabs openness. He valued the character of Rehab, but he could not provide an answer as yes for Rehabs request. He concluded the meeting by stating that it is Rehabs call to decide on how to increase her productivity on audits. As her progress on the discussed matter decides her future with the firm.

With the effort to deal with the problem, Rehab approached Muna, one of the senior auditors in her team and asked whether Muna had faced such problem. Muna stated, Yes Rehab, I initially found it difficult to complete my work within the budgeted time. Later, I handled it by ghost ticking. (Documenting audit procedures that have not been completed is called the Ghost ticking). Further she insisted Rehab to do the same to overcome the problem as no one will be watching.

Assume you are in the position of Rehab; Explain how you would be reacting to the situation in the given scenario.

Your report should:

i. Discuss your (Rehabs) ethical obligation as an Audit Trainee?

ii. Evaluate using the ethical theories (consequential, non-consequential and virtue), whether to take work home to complete and not to charge for the job or to involve in ghost ticking?

iii. Discuss your approach in explaining your stance to Mr. Waleed in your next meeting with him regarding the problem in the given scenario?

Seccatie Audit Tim Best PSMS Rehab ather completing her bachelor's degree Adming has joined the CPA fim ACE Auditing & Consultancy Service de ses r* Auly 2020. Behah has been sed to the ait of Star LLC. The war was informing Rehab that she is taking time in completing the natit kad to her and because of her delay the alt team is facing with the proceditithin the bedtime period Lastweck the partner in charge of the firm - Mr. Waleed hemked chub to meet him in till office. During the meeting the following complo Mr Walent Relah, the men whylaked yester the time record short. We found thut your time record het nie takes you 50 percent onger time to complete the edit work the class your litteam Rehab understand, Waleed. Is het belime and still learning Mr. Waleed That's true, but you know we find budget for this audit. Every how you spend more than the bed some will cost money for the firm this is, we must billettenewalt yeu kon which the client will be retter Wedel Relah I dondeland Mr. Wiltong time to expected t. Im to cut down the vill affect the quality of the antit asam unable to reconcile in the present per Mr. Waleed I would never compromisy of our sadit. I am trying to figure out why it takes you so much legere members this is the end of the workmatige and on weekends, complete it. This will be charge the fim or the client for the extra time I spending Me Waleed was surprised by the Resp. He led the character of Riclul, but he cetaldet prinden ya Reconciled the meeting by sichols call to decide on how to increase production made. As her proge on the discused matter decides berfie wiem Wab the elft to deal with the problem, approached Munene of the senioritos is bersama ko whether Mume la face de problem. Mums stad, Ye Relah 1 initially found it difficult to complete my work with the opted me handed it by ghostting (Documenting and proceseve been complete is called the tickin'Further sisted that the same the problemas one will be Musume you are in the position of Rebate: Explaibow you wld be reacting to the situation in the given ser Your report should Dis your Rehabetical obligat Trainee Evaluate the ethical heal and inac) whether to take wakime to complete and charge for the job or to solve in hosting Discme your approach planer Welcel in your next meeting with him regarding the problemen Total Marks-20) Seccatie Audit Tim Best PSMS Rehab ather completing her bachelor's degree Adming has joined the CPA fim ACE Auditing & Consultancy Service de ses r* Auly 2020. Behah has been sed to the ait of Star LLC. The war was informing Rehab that she is taking time in completing the natit kad to her and because of her delay the alt team is facing with the proceditithin the bedtime period Lastweck the partner in charge of the firm - Mr. Waleed hemked chub to meet him in till office. During the meeting the following complo Mr Walent Relah, the men whylaked yester the time record short. We found thut your time record het nie takes you 50 percent onger time to complete the edit work the class your litteam Rehab understand, Waleed. Is het belime and still learning Mr. Waleed That's true, but you know we find budget for this audit. Every how you spend more than the bed some will cost money for the firm this is, we must billettenewalt yeu kon which the client will be retter Wedel Relah I dondeland Mr. Wiltong time to expected t. Im to cut down the vill affect the quality of the antit asam unable to reconcile in the present per Mr. Waleed I would never compromisy of our sadit. I am trying to figure out why it takes you so much legere members this is the end of the workmatige and on weekends, complete it. This will be charge the fim or the client for the extra time I spending Me Waleed was surprised by the Resp. He led the character of Riclul, but he cetaldet prinden ya Reconciled the meeting by sichols call to decide on how to increase production made. As her proge on the discused matter decides berfie wiem Wab the elft to deal with the problem, approached Munene of the senioritos is bersama ko whether Mume la face de problem. Mums stad, Ye Relah 1 initially found it difficult to complete my work with the opted me handed it by ghostting (Documenting and proceseve been complete is called the tickin'Further sisted that the same the problemas one will be Musume you are in the position of Rebate: Explaibow you wld be reacting to the situation in the given ser Your report should Dis your Rehabetical obligat Trainee Evaluate the ethical heal and inac) whether to take wakime to complete and charge for the job or to solve in hosting Discme your approach planer Welcel in your next meeting with him regarding the problemen Total Marks-20)