Select Page

Part A.The management of a team of auditors involves knowledge of professional standards and leadership of the individuals on the team. Stress and unexpected developments are not unusual events during an audit. The team leaders have to be prepared to react and make decisions that perhaps they have never experienced before.Please describe what you think are appropriate actions if you were the audit team leader as a manager, and you had the following issues arise on the audit(treat them as individual, unrelated items):1. Your deadline to finish the audit is in two weeks, and you have five staff working to finish the audit at the client’s office. First thing on Monday morning you overhear in the company break room two of the client employees talking quietly about a rumor – the company controller (senior accounting person) is ready to quit. What do you do?2. A junior member of the audit team asks to see you in private – he tells you that he thinks one of the client senior accounting personnel is very angry and loud in response to audit inquiries. What do you do with this information?3. You are the junior person on an audit team with 5 other junior staff, a senior and a manager, working in the client’s office. Half-way through the 6-week audit work, the senior is getting anxious about the timetable and pace of work. The senior goes to each of the staff separately and asks if you think everyone else is working as hard as they can. How do you answer?4. One of the staff in your CPA firm (not assigned to the current audit) calls you and says she thinks she saw the client’s controller over the weekend being very abusive to what may be their spouse at a restaurant. What do you do with this information?