1. Assume Jose and Emily, the Auditors are CPAs and members of the AICPA. What ethical standards in the AICPA Code of Professional Conduct should guide them in dealing with the School District Managers inability to support travel and entertainment expenses? 2. Using Josephsons Six Pillars of Character as a guide, evaluate the statements and behavior of the Manager.

3a. Assume Jose and Emily report to Sharon, the Manager of the school district audit. Should they inform Sharon of their concerns? Why or why not?

3b. Assume that Jose and Emily fail to inform Sharon, the Audit Manager but she finds out from another source. What would you do if you were in Sharons position?