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Audit Overtime. The performance evaluation of all accountantsis based in part on their ability to do audit work efficiently andwithin the time budget planned for the engagement. New staffaccountants, in particular, usually have some early difficultylearning speedy work habits, which demand that no time be wasted.Cynthia Elizabeth started work for Julie and Jacob CPAs inSeptember. After attending the staff training school, she wasassigned to the Rising Sun Company audit. Her first work assignmentwas to complete the extensive recalculation of the inventorycompilation using the audit test counts and audited unit prices forseveral hundred inventory items. Her time budget for the work wassix hours. She started at 4 p.m. and was not finished when everyoneleft the office at 6 p.m. Not wanting to stay Page 674downtownalone, she took all necessary audit documentation home. She resumedwork at 8 p.m. and finished at 3 a.m. The next day, she returned tothe CPA offices, put the completed documentation in the file, andrecorded six hours in the time budget/actual schedule. Hersupervisor was pleased, especially about her diligence in takingthe work home.

Questions:

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

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

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