ABREMA: time and activity budgets: examples

Time and activity budgets: examples of analyses

1) Budget, hours and $ (by audit stages/ audit staff)

AUDIT STAFF	AUDIT STAGES				TOTAL BUDGET (HRS)	RATE PER HOUR ($)	TOTAL BUDGET COST ($)
AUDIT STAFF	Audit plann- ing	Tests of controls	Subst- antive testing	Opinion formu- lation	TOTAL BUDGET (HRS)	RATE PER HOUR ($)	TOTAL BUDGET COST ($)
Partners	100	10	10	70	190	250	47,500
Managers	350	70	140	150	710	200	142,000
Seniors	400	70	200	100	770	150	115,500
Assistants	100	250	350	50	750	100	75,000
TOTAL	950	400	700	370	2420		$380,000

2) Budget, hours (by audit stages/ financial statement category)

FINANCIAL STATEMENT CATEGORY	AUDIT STAGES				TOTAL BUDGET HOURS
FINANCIAL STATEMENT CATEGORY	Audit planning	Control testing	Substan- tive testing	Opinion formul- ation	TOTAL BUDGET HOURS
Non-current assets	30		100	30	160
Current assets	50	150	150	50	400
Current liabilities	30	50	150	50	280
Non-current liabilities	10		50	30	90
Capital and reserves	10		50	20	80
Revenue & expenses	50	150	50	50	300
Planning, supervision and review	770	50	150	140	1110
TOTAL BUDGET HOURS	950	400	700	370	2420

3) Budget, hours (by audit staff/ financial statement category)

FINANCIAL STATEMENT CATEGORY	AUDIT STAFF				TOTAL BUDGET HOURS
FINANCIAL STATEMENT CATEGORY	Partners	Managers	Seniors	Assistants	TOTAL BUDGET HOURS
Non-current assets	10	20	30	100	160
Current assets	10	20	100	270	400
Current liabilities	10	20	150	100	280
Non-current liabilities	10	10	70		90
Capital and reserves	10	10	60		80
Revenue and expenses	10	10	80	200	300
Planning, supervision and review	130	620	280	80	1110
TOTAL BUDGET HOURS	190	710	770	750	2420

4) Budget, hours (by months/ audit staff)

AUDIT STAFF	MAY	JUNE	JULY	AUGUST	TOTAL BUDGET HOURS
Partners	100			90	190
Managers	400	100	100	110	710
Seniors	300	100	250	120	770
Assistants	100	250	300	100	750
TOTAL BUDGET HOURS	900	450	650	420	2420

5) Budget, hours (by months/ audit stages)

AUDIT STAGE	MONTHS				TOTAL BUDGET HOURS
AUDIT STAGE	May	June	July	August	TOTAL BUDGET HOURS
Audit planning	900	50			950
Control testing		370	30		400
Substantive testing		30	620	50	700
Opinion formulation				370	370
TOTAL BUDGET HOURS	900	450	650	420	2420

6) Budget, hours (by audit stage/ audit activities)

AUDIT ACTIVITIES	AUDIT STAGE				TOTAL BUDGET HOURS
AUDIT ACTIVITIES	Audit plann- ing	Control testing	Sub- stantive testing	Opinion formu- lation	TOTAL BUDGET HOURS
Planning	100	90	180	50	420
Evidence gathering	650	270	400	230	1550
Evidence evaluation	150	30	70	50	300
Decision making	50	10	50	40	150
TOTAL BUDGET HOURS	950	400	700	370	2420