Questions
1. What conclusion do you believe Bill DeBurger reached in his inventory memo? Put yourself in his position. What conclusion would you have expressed in the inventory memo? Why?
2. Would you have dealt with your uncertainty regarding the inventory account differently than Bill did? For example, would you have used a different approach to raise the subject with Sam Hakes?
3. Evaluate Sam Hakes’ response to Bill’s statement that he was unable to sign off on the inventory account. In your view, did Sam deal with the situation appropriately? Was Sam’s approach “professional”? Explain.
4. Is it appropriate for relatively inexperienced auditors to be assigned the primary responsibility for such critical accounts as Marcelle Stores’ inventory? Explain.