Peach Blossom Case Study
Comments:
A review of the prior year’s time budget compiled for Peach Blossom Cologne Company has concluded that the total time needed for this year’s audit can be reduced to 200 hours and will be allocated as follows:
Increase planning to 13% and interim work to 30%
• The consequence of reducing planning and interim time for last year’s audit resulted in 34 hours of overtime use, as extra time was needed to address issues for year-end. By increasing the time allotment for planning and interim work for this year’s audit this will be avoided.
Increase budget for supervision and review hours to 20%
• This 20% will allow us to observe, test, and evaluate the total evidence we gathered in the interim and year-end work.
Decease the year-end
A review of the prior year’s time budget compiled for Peach Blossom Cologne Company has concluded that the total time needed for this year’s audit can be reduced to 200 hours and will be allocated as follows:
Increase planning to 13% and interim work to 30%
• The consequence of reducing planning and interim time for last year’s audit resulted in 34 hours of overtime use, as extra time was needed to address issues for year-end. By increasing the time allotment for planning and interim work for this year’s audit this will be avoided.
Increase budget for supervision and review hours to 20%
• This 20% will allow us to observe, test, and evaluate the total evidence we gathered in the interim and year-end work.
Decease the year-end