Mr. Taylor's small consulting firm specializes in providing internal control advice to his clients. All of his staff are certified internal auditors (CIAs) and want to gain expertise in a variety of industries. Jonas, his most senior consultant, always brings a less-seasoned associate with him for efficiency, training, and general camaraderie. Jonas first assesses a situation in about 8 hours and then will brainstorm ideas the client could use to address its internal control risks. The less-seasoned associate follows Jonas, listens to the half-day assessment ritual, and then helps to brainstorm improvements for the client. Jonas's labor rate is billed at$280/ hour, while the associate's billing rate is half that amount. 

(a) Mr. Taylor believes Jonas operates on an 80% learning curve for the "assessment" portion of his work, while his associate operates on an 85% learning curve. Create a chart outlining the number of hours each of these individuals is likely to spend on the next assessment of a client's internal controls. 

How much time will Mr. Taylor expect each of them to spend on their fourth such assessment of a client's internal controls? 

Answer rating: 100% (QA)

On the primary assessment Jonas can pay eight hours and his associate can pay four hours On the second assessment Jonas can pay 48 hours and his associate can pay 34 hours On the third assessment Jona... View the full answer