You have been the partner in charge of the audit of Concord Engineering Berhad.for many years. You have never given a qualified report because the internal control system of the company was satisfactory, the business in which the company engaged was quite stable and the results of compliance and substantive tests indicated that the account balances were fairly stated. In the current year's audit, you assigned a recently recruited member of staff as senior in charge of the job and reporting to you. You informed the senior in charge that the time budget should remain the same as in previous years and he agreed that he would try his best to maintain the same audit time frame. An interim audit was conducted and the following issues were reported. The company recently computerised its stock and general ledger systems; the chief accountant had resigned and the position was vacant for two months; and a number of errors were detected in the compliance tests of the system. The original time budget was not revised despite the above findings. Because of the tight time budget, the computerised systems were not tested by the IT auditors. The year end audit was completed just within the time budget. You were very pleased as this implied effectiveness and efficiency of the audit team