You are an assistant to Percival Young, president of G&L Construction. He has asked you to prepare
Question:
You are an assistant to Percival Young, president of G&L Construction. He has asked you to prepare a brief report on the status of the Shoreline Stadium project. The stadium is one of several major projects G&L has under way in North America, including a professional soccer stadium and another baseball stadium, which broke ground last month.
Shoreline stadium is a 47,000-seat professional baseball stadium. The project started on July 3, 2017, and the stadium is schedule to be completed on March 25, 2021. The project is estimated to cost $310,000,000. There is a $35 million management reserve to deal with unexpected problems and delays. The stadium must be ready for the 2021 major league season. G&L would accrue a $250,000 per day penalty for not meeting the April 3, 2021 deadline.
It is 8/8/2019 the day after the key milestone “Start Installing Seats” was to occur. Tables A and B (see next page) contain information submitted by your counterpart at the Shoreline project site.
Use the given information (including data from Table A and B) to prepare a report informing Mr. Young on the overall status of the Shoreline project in terms of costs and schedule. Mr. Young is not interested in specifics, but just how well the overall project is doing and if there is a need to take corrective action.
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany