Question
You were recently hired as a junior audit associate at a CPA firm. You and your colleagues are using data analytics to review accounts receivable.
You were recently hired as a junior audit associate at a CPA firm. You and your colleagues are using data analytics to review accounts receivable. Beth, a senior auditor, just completed an aging analysis and the output of her analytics suggests that over 50% of the companys receivables are uncollectable. Jamari, another junior auditor on the team, immediately questioned the analytic output. The amount was much higher than 10% uncollectable amount from the prior three years. Beth responded I know this isnt what we expected, but since it came from a complex analytic it has to be right. We should trust the output and move on. I think I know what Im doingIm the senior auditor after all. It was getting late, and the team agreed to discuss the matter in the morning. You have the day off, so Beth asked for you to share your thoughts in an email to her.
Write a 500-word email to Beth (appropriately formatted, typed, 12-point font) that addresses the following:
- . Do you agree with her? Do you disagree? Prior to noting your agreement (or lack thereof) you should explicitly explain the issue that Beth has asked you to weigh in on.
- Conclude your email to Beth with your further consideration of the matter and the implications for the company.
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