Reference no: EM132765686

Most accountant's complete performance evaluations, ethic are based on their a ability to do an audit work efficiently and within the time budget planned for the engagement. Many new staff accountants, in particular, usually have some early difficulty learning speedy work habits, which demand that no time be wasted.

• Elia started working for Arthur Anderson in September. After attending the staff training school, she was assigned to the Sleepy Owl Company audit. Her first work assignment was to complete the extensive recalculation of the inventory compilations, using the audit test counts and audited unit prices for several numbered inventory items. Her time. Budget for the work was six hours. She stated at 3pm and was not finished when she left the office at 5pm. Not wanting to stay downtown alone, she took all the necessary working papers home. She resumed work at 7pm and finished at 2am. The next day, she returned to the Sleepy Owl offices, put the completed working papers in the file, and recorded six hours in the time budget/actual schedule. Her supervisor was pleased, especially about her diligence in taking the work home.

Problem 1: What do you think about Elia's diligence and her understatement of the time she took