While working on a client audit, the audit manager, Jeff Longworth, is approached by Amy Weaver, the clients internal audit director. "I'd like to discuss something with you, Jeff..." Amy says, pausing slightly. "We've been really impressed with the work you've done this past year. As you know, we are looking to expand our internal audit group and we need good people." Flattered, Jeff responds that he is really satisfied with his career with his firm; however, he would like to learn more about the position. He agrees to meet Amy for dinner later in the week to get the details about the opportunity and figure out whether or not to pursue it. The next day, Jeff wonders whether he should tell anyone about the clients proposed opportunity. He intends to look up the policy about employment negotiations with clients, but is so busy working on the client's quarterly review that it slips his mind. By the end of the day, he decides it is too soon to tell anyone. At dinner, Amy describes a newly created senior manager position in the clients internal audit department. Saying little, Jeff thinks it sounds like an excellent chance for him to advance his career. Playing a little "hard to get," he thanks Amy for dinner, adding, "It sounds interesting...once we wrap up this quarter's 10-Q, I'll let you know if I want an interview. It's a big step I hope you understand." "Completely," said Amy as she hands him a copy of the job description. "I appreciate your interest if there is anything I can do to help you move forward with this, please don't hesitate to ask. Thanks for your time." A few days later, the CPA firms Audit Partner, Barbara Cortez, is waiting for Jeff in her office. She is slightly agitated. When he arrives, she asks him to have a seat and then informs him that she just learned about his employment discussion with the client. "We have policies based on the SEC rules that require us to take certain precautions in this situation," said Barbara. "Jeff, you should have informed me immediately if you were considering a position with a client. We were in the midst of performing our quarterly review procedures. Didn't it occur to you to speak to someone at the firm about this?" Not waiting for an answer, she added, "We are going to have to put a lot of time and money into resolving this situation." Jeff, looking surprised, says, "All I did was have dinner with Amy, and tell her I might apply for the job. Seriously, I didn't realize it would be such a big deal?" Considering the professional standards cited above, how do you think this situation should have been handled? Explain your reasons for disqualifying them, CITING authoritative sources (listed below) to support all your decisions.