Mr. Johnson's small consulting firm specializes in providing internal control advice to his clients. All of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mr. Johnson'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 $120/hour, while the associate's billing rate is half that amount. (a) Mr. Johnson believes Jonas operates on a 70% learning curve for the assessment" portion of his work, while his associate operates on a 75% 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. Johnson expect each of them to spend on their fourth such assessment of a client's internal controls? (Round answers to 2 decimal places, e.g. 15.25.) (b) Calculate the total billing amount for Jonas and his associate for their (1) first client assessment session and (2) second client assessment session. State whether they are the same or different. Total billing amount for the first assessment $ Total billing amount for the second assessment $ The billing amount for the second assessment would be higher than lower than same as the billing amount was for the first assessment. Mr. Johnson'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 $120/hour, while the associate's billing rate is half that amount. (a) Mr. Johnson believes Jonas operates on a 70% learning curve for the assessment" portion of his work, while his associate operates on a 75% 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. Johnson expect each of them to spend on their fourth such assessment of a client's internal controls? (Round answers to 2 decimal places, e.g. 15.25.) (b) Calculate the total billing amount for Jonas and his associate for their (1) first client assessment session and (2) second client assessment session. State whether they are the same or different. Total billing amount for the first assessment $ Total billing amount for the second assessment $ The billing amount for the second assessment would be higher than lower than same as the billing amount was for the first assessment.
Expert Answer:
Answer rating: 100% (QA)
a To calculate the learning curve hours for each individual we can use the following formula Learnin... View the full answer
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Posted Date:
Students also viewed these accounting questions
-
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...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Compensation survey data collected in July 2018 shows the average annual salary for Accountant II is $62,300.00 (rounded). With an aging rate of +2.3%, calculate the market value for an Accountant II...
-
Deer Valley Kitchen, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 3...
-
Bill was born in 1981. He is married to Hazel who was born in 1985. In 2020-21, Bill had business profits of 52,550 and received dividends of 2,200. Hazel received a salary of 220,570 and bank...
-
Refer to the information in QS 13-4. Use that information for Tide Corporation to determine the 2016 and 2017 common-size percents for cost of goods sold using net sales as the base. Data From QS...
-
Congratulations! Youve won a state lotto! The state lottery offers you the following (after- tax) payout options: Option # 1: $ 15,000,000 four years from now Option # 2: $ 2,200,000 at the end of...
-
When two electric charges are held a distance r apart, the electrostatic force between them is FE. The distance between the charges is then changed to 1r. (Enter numerical value only) The new...
-
Draw the free-body diagram of the uniform bar, which has mass M and center of mass at G. The supports A, B, and C are smooth. Given: M = 100 kg a = 1.75 m b = 1.25 m c = 0.5 m d = 0.2 m g = 9.81m/s2...
-
What is the value of F? D F
-
https://act.pearsoncmg.com/activity/1/4/2 Beginning of Year: End of Year: Assets Liabilities $27,000 $18,000 $64,000 $26,000 1) What is the equity at the beginning of the year? Beginning Equity 9000...
-
Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the two models relates to the required accuracy of the sensor. The Standard model is used for...
-
A dictionary is given, which consists of several lines of text. Each line consists of a word and its explanation , separated by a hyphen: .NET platform for applications from Microsoft CLR managed...
-
December 2001 I became what I am today at the age of twelve, on a frigid overcast day in the winter of 1975. I remember the precise moment, crouching behind a crumbling mud wall, peeking into the...
-
1. Soccer balls. 40% of the world's soccer balls are made in Sialkot, Pakistan, by a multitude of small manufacturers. Each individual firm is itself insignificant to global supply, and in many ways...
-
Blue Spruce Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2020, the company received a five-year promissory note with a face value of $522,000, paying...
-
The power company must generate 100 kW in order to supply an industrial load with 94 kW through a transmission line with 0.09 resistance. If the load power factor is 0.83 lagging, find the...
-
Analytical procedures can be used in which of the following ways? a. As a means of overall review near the end of the audit. b. As attention- directing methods when planning an audit at the...
-
From the auditors point of view, inventory counts are more acceptable prior to the year- end when a. Internal control is weak. b. Accurate perpetual inventory records are maintained. c. Inventory is...
-
When a sample of customer accounts receivable is selected for vouching debits, auditors will vouch them to a. Sales invoices with shipping documents and customer sales invoices. b. Records of...
-
Use the Ritz variational method for the harmonic oscillator, with trial wave functions \(\psi_{1}(x)=\) \(e^{-y^{2} / 2}, \psi_{2}(x)=e^{-y^{2}}, \psi_{3}(x)=e^{-2 y^{2}}\), where \(y=x \sqrt{m...
-
Consider a two-level system, with basis \(|1angle,|2angle\), and in this basis, a Hamiltonian with elements \(\left(\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight)\). Use the first form of the...
-
Use the practical variational method for the same harmonic oscillator ground state energy, with trial wave function \(\psi_{a}(x)=e^{-a y^{2}}\).
Study smarter with the SolutionInn App