Westford LLP is a medium size CPA firm in Orange County. Westford & Co requires its staff to record each hour they spend working on each client in the firms time management system. Here is the information that audit team members recorded regarding the amount of time on the audit engagement with Riverside.

Bob Newman audit engagement partner 2 hours

Pat Candy senior audit manager 6 hours

Ane Kinetong audit manager 35 hours

Six audit associates 130 hours

Total time spent on audit 173 hours

The total hours charged for the audit was 150 hours and total audit fee charged for the audit was $225,000. What is the leverage of the audit engagement?

8

4

6

3