Time budgets on audit engagements are not used for which of the following reasons?
A)To monitor actual audit hours worked by staff on an engagement.
B)To ensure that adequate time is allocated to significant areas of the audit.
C)To estimate an appropriate fee for the engagement.
D)To ensure that audit staff working on the engagement are paid the correct amount.

Question

Quizplus · Accepted Answer

Time budgets on audit engagements are not used to ensure that audit staff working on the engagement are paid the correct amount. Salaries are typically determined independently of the time budget and are not based on actual hours worked. Time budgets are used to monitor actual audit hours worked by staff on an engagement, to ensure that adequate time is allocated to significant areas of the audit, and to estimate an appropriate fee for the engagement.

Time Budgets on Audit Engagements Are Not Used for Which