Jasmine Wang encounters the following situations in doing the audit of a large car dealership. Wang isn't
Question:
Jasmine Wang encounters the following situations in doing the audit of a large car dealership. Wang isn't a partner.
1. The sales manager tells her there is a sale (at a substantial discount) on new cars that is limited to long-established customers of the dealership. Because her firm has been doing the audit for several years, the sales manager has decided Wang should also be eligible for the discount.
2. The car dealership has an executive lunchroom that is available free to employees above a certain level. The controller informs Wang that she can also eat there at any time.
3. Wang is invited to and attends the company's annual Christmas party. When presents are handed out, she is surprised to find her name included. The present has a value of approximately $200.
REQUIRED
a. Assuming that Wang accepts the offer or gift in each situation, has she violated any ethical rules?
b. Discuss what Wang should do in each situation.
Step by Step Answer:
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler