(J) Kim Bryan, a new staff auditor, is confused by the inconsistency of the three audit partners to whom she has been assigned on her first three audit engagements. On the first engagement, she spent a considerable amount of time in the audit of cash disbursements by examining cancelled cheques and supporting documentation, but almost no time was spent on the verification of property, plant, and equipment. On the second engagement, a different partner had her do less intensive tests in the cash disbursements area and take smaller sample sizes than in the first audit even though the company was much larger. On her most recent engagement under a third audit partner, there was a thorough test of cash disbursement transactions, far beyond that of the other two audits, and an extensive verification of property, plant, and equipment. In fact, this partner insisted on a complete physical examination of all property, plant, and equipment recorded on the books. The total audit time on the most recent audit was longer than that of either of the first two audits despite the smaller size of the company. Bryan's conclusion is that the amount of evidence to accumulate depends on the audit partner in charge of the engagement. REQUIRED a. State the differences in risk assessments that could affect the amount of evidence accumulated in each of the three audit engagements as well as the total time spent. b. What could the audit partners have done to help Bryan understand the differences in the audit emphasis on the three audits? c. Explain how these three audits are useful in developing Bryan's professional judgment. How could the quality of her judgment have been improved by the audits?
(J) Kim Bryan, a new staff auditor, is confused by the inconsistency of the three audit partners to whom she has been assigned on her first three audit engagements. On the first engagement, she spent a considerable amount of time in the audit of cash disbursements by examining cancelled cheques and supporting documentation, but almost no time was spent on the verification of property, plant, and equipment. On the second engagement, a different partner had her do less intensive tests in the cash disbursements area and take smaller
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