Refer to Exhibit 1.8. Read the description of the rule related to Integrity and Objectivity. What does this rule require?

Exhibit 1.8

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Exhibit 1.8 AICPA Rules of Conduct for Members in Public Practice Rule Section Number What You Should Know Guidance and Topic 100 Integrity and In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordi- nate his or her judgment to others. You are required to act with integrity and objectivity when perform- ing all services. objectivity If you offer a gift to a client or accept gifts or entertainment from a client that is not reasonable, self-interest, familiarity, or undue influ- ence threats to your compliance with this rule may exist. A conflict of interest creates adverse interest and self-interest threats to your compliance with this rule. Self-interest, familiarity, and undue influence threats to your compli- ance with this rule may exist when you and your supervisor or any other person within your organization have a difference of opinion relating to the application of accounting principles; auditing stan- dards; or other relevant professional standards, including standards applicable to tax and consulting services or applicable laws or regulations. An advocacy threat to compliance with this rule may exist when a you or your firm is engaged to perform nonattest services, such as tax and consulting services, that involve acting as an advocate for the client or to support a client's position on accounting or financial reporting issues. The existence of unpaid audit fees for professional services previ- A member in public practice shall be independent in the perfor- mance of professional services as required by standards promul- gated by bodies designated by Council. 200 Independence ously rendered to an audit client may create self-interest, undue influence, or advocacy threats to the covered member's compliance with this rule. In some circumstances, no safeguards can reduce an independence threat to an acceptable level. For example, as discussed earlier, the Code specifies that a covered member may not own even an immaterial direct financial interest in an audit client because there is no safeguard to reduce the self-interest threat to an acceptable level. As another example, threats to the covered member's compliance with this rule could not be reduced to an acceptable level by the application of safe- guards if the unpaid fees are for any previously rendered professional service provided more than one year prior to the date of the current- year report. Accordingly, independence would be impaired.