As audit manager you realize that to complete the audit of xyz company you will need to bring in two more auditors and another audit supervisor March 15th 2010. However the cost of the additional auditors will cause the audit manager to increase the cost of Audit of XYZ company by $45,000. Without the additional auditors the audit can be completed by the First of April 2010. The audit covers the year Jan 1 2009 to Dec. 31, 2009. As audit manager what would you do and why?© BrainMass Inc. brainmass.com October 25, 2018, 2:57 am ad1c9bdddf
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As an audit manager, I would first consider whether or not the audit must be done by March 15, 2010. If it is for tax purposes, most companies can file their taxes later than the normal deadline of April 15, 2010. Therefore, unless absolutely necessary for this reason, the audit could still be done by April 1, 2010.
Second, you would have to consider how much you charged XYZ for the current year services, if it was at a discounted rate, a rate that ...
This solution provides an explanation of an audit manager's decision in determining whether to hire additional auditors on a project.
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(1). Discuss the types of audit reports.
(2). Discuss the purpose of disclosure checklists.
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