Westford LLP is a medium size CPA firm in Orange County. Westford & Co requires its staff to record each hour they spend working on each client in the firm’s time management system. Here is the information that audit team members recorded regarding the amount of time on the audit engagement with Riverside.

 

Bob Newman  – audit engagement partner               2 hours

Pat Candy       – senior audit manager                      6 hours

Ane Kinetong – audit manager                                  35 hours

Six audit associates                                                    130 hours

 

Total time spent on audit                                            173 hours

The total hours charged for the audit was 150 hours and total audit fee charged for the audit was $225,000.  What is the leverage of the audit engagement?

Answer rating: 100% (QA)

Leverage of the audit engagement is the first step of auditor to allign client and auditor... View the full answer