Acceptable Auditing Standards

Rogers and Green admitted their failure in following the accepted auditing standards while auditing the company. In the statement, they failed because the work was too much and the number of personnel was not proportional to the amount of work available. Often, it is advisable that before and auditor accept the audit job in a company, the audit firm must consider some factors. One of the factors to consider relates to the reputation of the client (Knechel, & Salterio, 2016). There are high-risk clients that auditors should accept their offer because of the low levels of integrity. The nature of the industry and the applicable regulations matters before the auditor accept the offer. 

Proper risk assessment lacks in the case of Rogers and Green. The auditor ought to have considered the attitudes of the management in Martin Corporation and their accounting systems. Analysis of the potential gains from the audit job is an important consideration. Rodgers had to consider the workload and the number of personnel before starting the audit job. Often, after the job has been done well, conflict of interest between the company and the audit firm may arise. Conflict of interest reduces the profitability of the audit job. Resources are important factors to consider before starting an audit job (Knechel, & Salterio, 2016). The personnel available to do auditing are important considerations because the success of the job depends on their availability. 

Overall, audit fee and the level of work should follow the established legal requirements (Knechel, & Salterio, 2016). Apparently, they did not receive enough pay from Martin Corporation though the work was too much. The Rodgers scenario is a typical example of fraud because the corporation did not compensate well for the work done. However, it is also a failure on the side of Rogers and Green to follow the right procedures as an auditor. 

References  

Knechel, W. R., & Salterio, S. E. (2016).    Auditing: assurance and risk . Routledge.