The following circumstances raise questions about an auditor's ethical conduct.

1. An auditor accepts an engagement knowing that she does not have the specialist knowledge required.

2. A public accounting firm states in a newspaper that it has had fewer lawsuits than its main competitors have had.

3. An auditor discloses confidential information about a client to a successor auditor.

4. A public accountant pays a commission to a solicitor to obtain a client.

5. A public accountant agrees to be the committee chairperson for a local fundraising activity.

6. An auditor accepts a Christmas gift from a client.

7. An auditor accepts a commission from an insurance company for recommending it to one of its audit clients.

8. An auditor has a bank loan with a bank that is an audit client.

9. An auditor retains a client's records as a means of enforcing payment of an overdue audit fee.

Required

a. Discuss the fundamental principles of the Code of Ethics for Professional Accountants in relation to the above.

b. Indicate in each of the above circumstances whether the effect on professional ethics is (i) a violation, (ii) not a violation or (iii) indeterminate, and explain.