Jules is a student in the CPA program, and was recently hired as a junior auditor. His employer is conducting an external audit of DDD Ltd.’s 2016 fi nancial statements. DDD is a wholesale distributor of electronic supplies. Jules found a purchase invoice with all required supporting documentation, including a receiving memo attached to a packing slip, showing that DDD had purchased and received 20,000 pieces of a particular item. However, the supplier invoice only listed 2,000 pieces, and the supplier mistakenly billed DDD only for 2,000 pieces. When Jules brought this to his audit manager’s attention, he was told not to worry about it. The manager said an audit can never find all mistakes and that sometimes mistakes work in the client’s favour, and sometimes work against the client, so they “balance out.” The manager told Jules: “If we were to advise the client, we would have to modify our audit opinion if the client refused to notify the supplier, and DDD would lose money.” Jules was told that if he wanted to keep his new position, he had better learn how business everywhere really operates. The manager is also a professional accountant. 

Required

Identify four unethical issues in the above situation, and explain why they are unethical.