PTIONAL CLIENT SERVICE SCENARIO 4 "EXCEPTIONAL we act in the best interests of one's client? How does one act in the audit of a distribution company. The The Situation A senior accountant is company is a big client instructed his team te One day the audit prepare the company's Fee valuation of inventory, usin the standard being contin ountant is working on the audit of a distribut client of the office of the managing director of the firm, who he his team to provide the greatest level of service to this da be audit manager approaches the senior accountant and asks him to company's Federal tax return. A significant part of the tax retu of inventory, using a LIFO/FIFO standard of valuation, the dard being contingent on the legal tax benefits that can accrue. Because the on company has thousands of products, the manager suggests that the ccountant use a statistical sampling method of valuing the inventory for tax ses. The senior accountant has not done anything like this before. Knowing this the manager offers his assistance, saying, "When you get to that point of the tax return, let me know, and I'll show you how to do it." Later, when the senior accountant asks for this help, the manager shows him how to use the relevant software for statistical samples. He then adds: "I'll set this you so that it runs 1000 samples. You can then pick the sample that is most advantageous to our client's tax position and use that for the tax return." The senior accountant at first shows some hesitation. Seeing this, the manager reminds him of what the managing director had requested, namely, that this client be given exceptional client service." The manager suggests that to do 1000 samples, and not merely one, is to go through the trouble of finding the sample that best advances the interests of the client. This is the way to provide exceptional client service." Question The senior accounta And yet this sort of tax retur of searching throug forbidden by the lett Which of the followin accountant continues to have doubts about the suggested procedure. of tax return is new to him, and, as far as he knows, the procedure 1g through 1000 samples to find the best one for h the letter of the law. What should he do in such a circu le following is not permissible? And, of the permissit which is the best course of action