Question

Audit Overtime. The performance evaluation of all accountants is based in part on their ability to do audit work efficiently and within the time budget planned for the engagement. New staff accountants, in particular, usually have some early difficulty learning speedy work habits, which demand that no time be wasted. Cynthia Elizabeth started work for Julie and Jacob CPAs in September. After attending the staff training school, she was assigned to the Rising Sun Company audit. Her first work assignment was to complete the extensive recalculation of the inventory compilation using the audit test counts and audited unit prices for several hundred inventory items. Her time budget for the work was six hours. She started at 4 p.m. and was not finished when everyone left the office at 6 p.m. Not wanting to stay Page 674downtown alone, she took all necessary audit documentation home. She resumed work at 8 p.m. and finished at 3 a.m. The next day, she returned to the CPA offices, put the completed documentation in the file, and recorded six hours in the time budget/actual schedule. Her supervisor was pleased, especially about her diligence in taking the work home.

Questions:

1. What do you think about Elizabeth’s diligence and her understatement of the time she took to finish the work?

2. What would you think of the case if she had received help at home from her husband Paul?

3. What would you think of the case if she had been unable to finish and had left the work at home for her husband to finish?

Answer 1

1). This is a case, but as Elizabeth was not able to complete the work in the stipulated time, she took the work home and completed it. However, I think that the work would have been completed in time if she would have taken time to do it and in a timely manner. But, sometimes as a CPA, you have to take work home due to the hectic work schedule. This has to be taken into consideration. So, it was right for her to take the work to home. But, as a real life professional, we have to balance life both professionally and personally and should try to complete the professional life tasks in the premises, as once, we reach home, we tend not to work so much and the concentration is lost.

2). Receiving help with one of the family members is a good thing, due to overload of work. However, in this case I assume that the husband does not know anything about accounting and audits, so it will take more time to explain the husband about it, which inturn takes away the time and she has to work for more hours. Although, if she can make the explanation a tit bit fast, she will be able to complete the work on time. I would recommend the work to be done alone, as it is audit and any mistakes will effect her future career prospects, as she had joined recently.

3). As, in the previous case, I am assuming that the husband does not know the work. So, I have to assume that the work cannot be completed in time and this will be the case where she will not be able to complete the work in time. This case may also lead to a performance review, as the work was not completed and effect her future career prospects.

Note: These answers are only opinions as per given scenario's. Thoughts may differ. If any issues, go as per law and schedules of work timings of a govenmental organizations and also find the eligibilities for overtime and so on.