Question

You are a new staff associate on an engagement team that is auditing one of your accounting firm’s biggest clients. You overhear your audit manager making lunch plans with the client’s internal audit director to discuss a job opportunity within the company’s internal audit group. Describe what you would do in this scenario and why. Where would you look for guidance on how to handle this scenario?

Answer 1

This is the condition that necessitates extreme carefulness to deal with. We don't want to intimidate the manager but we need to avert the nastiest consequence. We need to comprehend that the manager acknowledged the invitation since there might be no clear limit which lunch he could sign up for or which one he couldn't. And not to accept the invitation, he might hurt his network. So the best thing to do is to refer to internal function that enable assistance concerning ethics what to do to react to the condition.