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Ch 19 Mini Case

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Mike Stephan is a first-year staff auditor at Willis and Adams. Mike recently graduated with his undergraduate degree in accounting and was excited about his new job at Willis and Adams. Mike came from a smaller school that typically does not get a lot of attention from campus recruiters. Mike was pleased to get an interview and then an offer from Willis and Adams. From the beginning, Mike was impressed with the firm’s culture and he felt that it would be a great fit for him professionally. Throughout his junior year, he worked hard to reach out to the firm’s recruiters to demonstrate a sincere interest in the firm. In the end, Mike was one of only two students that Willis and Adams hired from his school. Mike believed that his school’s …show more content…

After Mike explained the situation, Alex was silent for a long time and then finally said:
“Look, we are just going to have to eat that lost time. I just got done speaking with Dianne and she is adamant about finishing this audit under budget. Dianne is up for promotion to senior manager and I’m sure she doesn’t want an over-budget audit right before the partners meet to decide her promotion. Don’t worry about it, Mike. Stuff happens and it was partly the client’s fault anyway. Just take as long as you need to finish the planned procedures and then put down six hours on the work schedule.”
From what Alex said, it seemed that Dianne Morris, the manager on this audit, was the one who was applying the pressure on Alex to keep the audit under budget. But eating time just didn’t feel right. Mike hesitated and then said, “I don’t know Alex. Don’t you think we’d better just mark down the actual hours?”

Alex sighed deeply and said:
“Mike I know you are new, but this stuff happens all the time. Think of it as spending a couple extra hours on personal development. In recent planning meetings, the partners have really been stressing the importance of not letting jobs get out of control. An over-budget audit won’t look good for any of us right before performance evaluations. Look Mike, I promise eating time is no big deal—people do it all the time. You want a good performance eval, don’t you? Let’s just dig in and

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