Jane1 Ashley was a staff accountant at Viccio & Martin, an accounting firm located in Windsor, Ontario. Jane had been a co-op student while in college, and during her first work term with the firm, she had the privilege of being on several audits of various medium-sized companies in the Windsor area, where she picked up some valuable audit experience. Fresh out of her final academic term, she felt ready to put her scholastic knowledge to work and show the seniors and partners of Viccio &

Martin her stuff.

In her first assignment, Jane was placed on an audit team consisting of herself and a senior. This senior, Frankie Small, had been a qualified accountant for five years and had been on staff for over ten. He was well respected within the company and was known for his ability to continually bring engagements in under budget.

The client, Models Inc., which was Viccio

& Martin’s largest, was a private corporation which made its business in the distribution of self-assembly, replica models, toys, and other gaming products. It operated from a central warehouse in Windsor but also distributed from a small warehouse in Toronto and had a drop-off point in Michigan as it purchased merchandise from companies in the United States. Its year end was April 30. Since Jane had joined the firm on May 15, she had not been present for the year-end inventory count, which was taken on the year-end date. Frankie S. was present, along with another co-op student, who, incidentally, had returned for her final academic term on May 11. Jane asked Frankie how just two people could simultaneously be present for an inventory count at three locations. Frankie responded by telling her that since the inventory balances at the Toronto warehouse and Michigan dropoff sites were of immaterial amounts

(based on representations by management, company records, and audits in prior years), audit staff had only been present at the Windsor warehouse count. Models Inc. was on a periodic inventory system........

Question:-

1. What should Jane do? Why?