Arnold Ambitious has recently completed a difficult Financial Statement audit for a nonpublic audit client. Ingrid Influence, the CFO, is thrilled with Arnold's work and tells him that she will recommend his firm to other corporate leaders. Ingrid is so impressed with Arnold's abilities, she asks him to prepare a complex feasibility analysis regarding an international acquisition. Eager to advance his career, Arnold accepts the special project even though he knows he is unqualified. Arnold plans to learn on the job.

Later that week, Arnold's supervisor expresses both surprise and pleasure that Arnold has the expertise to prepare the analysis and has taken the initiative to accept additional work from the client. As Arnold begins to research the tasks involved, it becomes clear that he lacks the necessary expertise to complete the analysis competently. Arnold's supervisor has told other partners that Ingrid is planning to refer new clients to the firm because of Arnold's initiative.

Arnold has been receiving regular calls from both Ingrid and his supervisor inquiring about his progress. Recently, Arnold's supervisor told him that Arnold is on the short list for a promotion. Arnold thinks he might be able perform a substandard job with no one being the wiser, since no one else at the firm has the expertise to review his work.

Arnold sits in his office helplessly going through Ingrid's documents and is completely at a loss.

What should Arnold do?

Answer rating: 100% (QA)

1 The major stakeholders are the company that is involved in the international acquisition since the report may affect the acquisition if the report i... View the full answer