This case study sheds light on how to avoid risks caused by manager-subordinate dating relationships (fraternization) such as employee misunderstandings, retaliation charges, favoritism complaints, wrongful termination lawsuits, and sexual harassment lawsuits, as well as associated ethical risks.  Risk avoidance can be accomplished through a better understanding of the pervasive guidance offered by judicial outcomes and typical accounting firm directives. This case study can be used in the classroom to amplify the difficult issues that accompany fraternization in accounting firms.  The authors estimate that classroom presentation and discussion of this case would require a minimum of 30 minutes of classroom time.  Background information and inherent risks associated with fraternization are discussed.  We conclude with practical steps to mitigate those risks.

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The reciprocal method of service department cost allocation requires linear equations to be solved simultaneously. These computations are often so complex as to cause the abandonment of the reciprocal method in favor of the less sophisticated and theoretically incorrect direct or step-down methods. This article illustrates how Excel's Solver Function can be used to greatly simplify the reciprocal cost allocation method. Solver Function users will be pleased to see how easy it is to let Excel do the mathematics once the linear equations are formulated.

The current paper focuses on internal controls in the income producing real estate industry. The industry is unique in that most revenue is generated from contractual lease agreements. Since the revenue cycle is a principal area of waste, fraud and abuse, revenue-related internal controls are critical. An industry-specific list of controls is presented and can be used by accounting professionals and managers of income producing real estate firms to benchmark the appropriateness and sufficiency of their own internal controls. The paper can also be used in training settings to demonstrate the manner in which internal controls are often industry-specific.