Question 3:

What problems are created for a CPA firm when audit staff members
under report the amount of time spent in performing specific audit
procedures?

Answer: When the amount of time is underreported, the CPA firm may under bill the
clients for time that was spent providing the professional services. Since, staff time is
the primary unit of measurement for auditing fees. As a result, the company's revenue
is limited. In addition, it may promote the development of unreasonable budgets in the
future, which could have an impact on the audit staff’s morale and result in poor audit
performance, so murag substandard ag quality sa services nga ilang mga provide.
Furthermore, the under reporting will result for the company to underestimate the time
needed for such contracts. As a consequence, auditors on upcoming engagements will
be required to complete audit processes in an excessively short amount of time. This
obstructs both the execution of an efficient audit and the fair evaluation of business
workers. Lastly, it may also affect the firm’s capacity to draw in and hold its staffs. Since
ilang time sa pagperform sa mga audit procedures is ma underreport.

When the amount of time is underreported, the CPA firm

 may under bill the clients for time that was spent providing the professional
services
 it may promote the development of unreasonable budgets in the future
 the under reporting will result for the company to underestimate the time needed
for such contracts
 this obstructs both the execution of an efficient audit and the fair evaluation of
business workers
 may also affect the firm’s capacity to draw in and hold its staffs

Problems that are created for

CPA firms when audit staff
members underreport the
amount of time spent in
performing the specific
procedures include possible under
billing of
the client, may encourage the
development of unrealistic budgets
in the future that may affect
the morale of employees and
could lead to substandard
performance of audits, and
under
reporting of time on a large scale
may adversely affect the firm's
ability to attract and retain
employees..