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Summary Of The Auditor Essay

1585 words - 7 pages

Summary of The Auditor
The Auditor by James K. Loebbecke tells a story about the life and career of an auditor named Jack Butler. The book shows Jack’s career from his education all the way to his promotion to partner. Loebbecke designed this story about Jack as a teaching tool to give students an understanding about the life of an auditor.
The story begins with Jack’s promotion to partner and how it was bittersweet for him. Jack is excited for the promotion, but is also nervous about the extra responsibility partners have and the stress it can bring on family life. He is also upset because his friend Don was considered for the promotion too, but was turned down. In these chapters, ...view middle of the document...

In these chapters, the author shows how it is beneficial for a student to build relationships with faculty who can help guide them as they prepare for a career. Also, he shows the importance of attending firm night to begin networking with potential employers to increase chances of employment.
As the story continues with Jack’s early days with The Firm, he learns the ropes of public accounting and the life of being an auditor. Also, “Bearisms” are introduced in the book. “Bearisms” are a series of thoughts and advice of Quentin Barnes which he gives throughout the book to guide Jack and new recruits in their new career. Jack attends a training school in Michigan with other new recruits to learn auditing procedures. Once he is finished with the training school, Jack is assigned to his first auditing job with a cement company, Rineholt. At Rineholt, Jack learns a lot, but is overwhelmed. Jack is reassured by Bear through one of his “Bearisms”, “If you don’t feel that you’re in over your head, you aren’t making sufficient progress.” Jack also faces his first ethical dilemma at Rineholt. He discovers the petty cash custodian, who is a single mother, has been borrowing money from the fund to help pay her bills. Jack feels empathy for the mother and doesn’t want to feel guilty if she gets terminated, but knows he must do the right thing and report it to the company. Also at Rineholt, Jack gets his first real test of professional skepticism. He is observing cement inventory stored in silos with an employee named Walt. Jack gives a measurement to Walt in order to calculate the volume of cement in the silos. After the measurement, Jack notices that Walt writes down a different number. When Jack asks Walt about it, Walt tells Jack about “dead-fill allowance factor.” Jack was unsure about the explanation, so he talks with management. Jack finds out that Walt was changing the measurements. The author uses these scenarios to demonstrate some of the difficult aspects of the auditing professional. Auditors must be steadfast in their duty to the client. They cannot be afraid to be skeptical of the practices of their client or be afraid to deliver bad news if necessary.
The author puts Jack into some situations to show examples of how auditors may encounter difficult situations with clients and personnel that will require much consideration. The first example of a difficult situation for Jack is when he works underneath Stan Wright on the Ardmore audit. Stan had a reputation for demanding a lot from his subordinates and being unreasonable regarding working conditions. Stan was working Jack and several other auditors very hard to the brink of exhaustion. Barney, Jack’s coworker, was having a nervous breakdown from exhaustion and from his wife threatening to leave him because of work. Jack understands the situation and tells Barney only to work forty hours per week despite Stan’s orders. In the end, the partner in charge sides...

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