Audit of a large auto dealership


Problem: Marie Janes encounters the following situations in doing the audit of a large auto dealership, Janes is not a partner.

Situations as follows:

1. The sales manager tells 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 manger has decided that Janes should also be eligible for the discount.

2. The auto dealership has an executive lunchroom that is available free to employees above a certain level. The controller informs Janes that she can also eat there any time.

3. Janes is invited to an attends the company's annual Christmas party. When presents are handed out, she is surprised to find her name included. The present has a value of approximately $200.

Problem

a) Assuming Janes accepts the offer or gift in each situation, has she violated the rules of conduct?

b) Discuss what Janes should do in each situation.

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Accounting Basics: Audit of a large auto dealership
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