Jennifer Smith is currently working as a senior auditor on the audit of a large auto dealership. The sales manager told her that 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 that Jennifer should also be eligible for the discount.

Required:

a. Describe how this situation might threaten Jennifers independence from the auto dealership.

b. Assuming Jennifer accepts the offer, discuss whether she has violated the rules of professional conduct.

c. Discuss what Jennifer should do in this situation.