Jemmy Le, CPA, worked for BarrelOn corporation, a manufacturer of wine and beverage oak barrels. He has been a good employee, so when he got married the CEO of BarrelOn loaned him the down payment for a house. Instead of a bonus last year, the company gave Mr. Le a compensation arrangement that is based on the profits of the company. The company also gave Mr. Le a Lexus RX350 for business use which makes a good ride when he goes skiing on vacation. Part of the reason for Mr. Le’s success is the influence of his step-brother who is on the board of directors.

Required:

Describe any threats that Mr. Le’s working relationship may have and what safeguards may be put in place to compensate.