The following situations involve a possible violation of the AICPA's Code of Professional Conduct. For each situation, 

(1) determine the applicable rule from the Code, 

(2) decide whether or not the Code has been violated, and 

(3) briefly explain how the situation violates (or does not violate) the Code. 

A) A CPA departs an audit firm he worked for a decade and takes another position in an entity that has an audit, and he uses his knowledge gained in public accounting to circumvent the audit process. 

B) A CPA working in an audit firm passed confidential information about at least seven acquisitions planned by one of the firm's clients to her sister and sister's husband. *

Answer rating: 100% (QA)

A 1 Rule 501 Acts Discreditable 2 The action of the CPA violated Rule 501 3 Rule 501 prohibit a memb... View the full answer