Perhaps Bill could go and speak to other accountants and see what they think. For example, would you have used a different approach to raise the subject with Sam Hakes?
I would have requested additional tests weeks ago! Question 2 Yes, I would have used a different approach. It was not wrong for Bill to be uncertain, that happens in auditing all of the time.
He should just present the memo in the form that Sam expects it to be. This is why inexperience among the young audit staff is regarded as a primary cause for audit failure. What this means is, if Bill was not able to find sufficient information to issue a sure opinion he needed to take further steps and carry out further tests in order to find it.
I am really not sure what I would do in this situation. Bill should not have approached Sam Bill deburger an explanation.
Sam is a partner in the audit engagement, and he would be liable in case there was a misrepresentation in the audit report. Bill also came out with the refusal to sign off Bill deburger report without giving Sam a sufficient explanation.
This would have been in terms of timing and provision of explanation to Sam. Bill should have brought the issues to Sam and then told him that because of the issues, he was not comfortable giving Marcelle stores a clear report.
Then I could write the memo more confidently. To begin with, Sam did not take an interest in trying to understand why Bill was not ready to sign off on the inventory account as he was tasked with this responsibility.
I would not have waited until the final minute to raise the issue. Question 3 The response that Sam gave Bill came out as being unprofessional and inappropriate given the situation. Given the time that had been spent on the inventory audit, if there were errors or fraud, they could have been detected by this point.
Bill was trying to do the right thing by telling his boss he was not comfortable with signing off on an account he was unsure of.
For this reason, he needed to ascertain that everything was in order. Although it is frowned upon, auditors are allowed to release and adverse opinion or a disclaimer. In case I was faced with such a dilemma, I would seek the opinion of other auditors.
Bill may not be sure the overstatement is right, but he is also not sure it is wrong! January 22, Question 1 In the line of conducting their duties, auditors are allowed to present an adverse opinion or a disclaimer in case they come across any information that necessitates these aspects.
Since Bill waited until the last minute, Sam did not see it as being feasible to apply the relevant steps and tests for Bill to confirm the uncertainty. The error Bill made was the timing and manner he approached Sam Hakes.
If Bill had approached Sam earlier when he first noticed the problem further tests could have been carried out the issue may have been avoided.
If not, then Bill may feel more at peace about writing a memo that states the account is " presented fairly, in all material aspectsin conformity with the general accepted accounting principles" Knapp, pg However, this does not seem necessary.
It would have been inopportune for Sam to side with him in such a situation. Bill Deburger - in Charge Accountant Autor: In this case, Bill has the option of completing the memo while including the opinion that his boss expects from him. If Sam had been approached with the whole picture, his reaction probably would have been better.BILL DEBURGER, IN-CHARGE ACCOUNTANT design by Dóri Sirály for Prezi Bill DeBurger Regional chain of specialty stores In loss due to poor economy, competition & higher supplier prices.
Discussion Bill DeBurger Anil Kishore Ashley Kawa Niria Avila Nitin Chowdhary Patrick Blais-Laflamme Peiyi Zhang Xiaobo He Group Members Scenario Our Opinion If you were Bill, what would you do? Sugar Grove attorneys handling traffic tickets and criminal cases, expungements, guardianships and adoptions, estate planning, real estate sales, and taxes.
Research genealogy for William Sen Deburger of Indiana, USA, as well as other members of the Deburger family, on Ancestry. Answer to What conclusion do you believe Bill DeBurger reached in his inventory memo? Put yourself in his position.
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