MODULE 22 CASE STUDY - DELEGATION

It is 1.30 p.m. on Friday, the last day of fieldwork at Vortex Company. The financial
controller will be leaving on a two week vacation from today. The manager has just
completed his review of the working papers and has identified two key issues
related to the client’s valuation of inventory that may require adjustments to the
financial statements. Frank, the in charge, must investigate and clear these issues
with the financial controller by the end of the day in addition to the manager’s other
review notes.

The manager has also left review notes for Toni, the staff assistant to clear, and she
has already started working on these points but has several issues she needs to
discuss with Frank before she can proceed. The front of file section has to be
completed and additional information obtained to support certain note disclosures in
the financial statements. Toni has never worked on the front of file section before
and so Frank cannot assign this task to her without spending more time to closely
supervise her. Toni will be on another engagement next week.

Frank knows he will not get all of this done today and expects to work through the
weekend. Tomorrow Frank will be in the office to finish up his other audit where the
client requires the final report by Monday afternoon. Frank remembers he must call
the financial controller at this client today to discuss a few open items on the
engagement.

What actions could Frank have taken during the engagement to make his life
easier?