CASE 6.2
BILL DEBURGER,
IN-CHARGE ACCOUNTANT
Synopsis
Bill DeBurger is an in-charge accountant with a large national accounting firm. Within Bill’s
firm, an in-charge accountant is typically an individual with one to three years’ experience in public
accounting. Bill has just completed auditing the inventory account of Marcelle Stores, a retail
client. The year under audit was a difficult one for Marcelle. A poor economy and aggressive
competition caused the company’s net income to fall from almost $8 million in the previous year to a
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Bill DeBurger, In-Charge Accountant—Key Facts
1. In Bill DeBurger’s firm, an in-charge accountant is an individual with one to three years of
experience; in-charges are expected to complete their assigned tasks with little supervision.
3. The year under audit has been a difficult one for Marcelle; the previous year the company
reported a profit of nearly $8 million, while in the current year its pre-audit net income is
approximately $500,000.
4. A material error discovered in Marcelle’s inventory account could potentially wipe out the
company’s pre-audit net income and force the firm to report its first-ever net loss.
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Instructional Objectives
1. To provide students with insight on the nature of the professional role and responsibilities of
auditors with one to three years’ experience in public accounting.
Suggestions for Use
This is one in a series of cases intended to introduce students to the work role and responsibilities
of public accountants occupying various positions on the typical employment hierarchy of a public
Suggested Solutions to Case Questions
1. Most students believe that Bill DeBurger indicated in his memo that the inventory account
balance was materially accurate-–which was the actual decision made by the”real” Bill DeBurger.
2. Clearly, Bill should have discussed this issue with the audit partner much earlier in the audit. By
waiting until near the end of the audit, Bill placed the audit partner in a very difficult position.
Having said this, however, Bill did act on his conscience. After reviewing the inventory workpapers,
3. I believe it is important to continually remind students that when evaluating the behavior of an
auditor (or anyone else for that matter) involved in a difficult situation, they must attempt to put
themselves in that person’s shoes, so to speak. Typically, students do not believe that the audit
partner reacted professionally to Bill’s revelation. Anger, even veiled anger, is certainly unwarranted
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4. No doubt, most large accounting firms would likely assign a senior to the inventory account of a
client similar to Marcelle Stores, if at all possible. However, a key fact of life for major accounting
firms is rapid turnover among their professional employees. As a result, on many engagements, it