In this scenario, the audit engagement allows for 1,000 hours of audit work on an attestation...

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Accounting

In this scenario, the audit engagement allows for 1,000 hours ofaudit work on an attestation engagement. You are the auditorassigned to the case. Your audit manager explains to you that youcannot exceed 1,000 hours of billable hours to the client. You arewondering what might happen if you found evidence of a fraud,whether that would affect the audit. You express your concern aboutthe audit with your manager. Your manager tells you not to worryabout it, because you may not find any evidence of fraud, anyhow.She reemphasized the need to stay with the allotted hours for theengagement. The auditor has to exercise professional judgment inplanning and conducting fieldwork while faced with staying withinthe allotted hours to complete the audit engagement; yet you feelthat you need to spend more time looking for evidence of fraud. Youfeel as though your manager is more concerned about finishing theaudit engagement on time than in spending any extra time trying todetect fraud. The ethical dilemma is that you feel your manager isnot allowing you enough time to conduct testing in an effort tofind fraud. Explain how you would approach your manager to raiseyour concern in spending what you feel is an appropriate amount ofhours trying to find evidence of fraud.

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In case of conducting audit within a specific time period planning of an audit is very important An auditor can only provide a reasonable assurance regarding the lack of material misstatements in the financial statements Therefore there is always an inherent risk that    See Answer
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