Independence. For each of the following situations involving non-audit consulting indicate whether it violates the IFAC’s Guideline on Ethics for Professional Accountants and the rationale for the applicable guideline.

1 Marco Silves, Contador Publico (CP), is a sole practitioner. For some clients he provides both write-up work and auditing.

2 In preparing a tax return for Maria Higuera, Carmen Gendusa, Revisor Official de Contas (ROC), noted that the deduction for professional expenses was quite large. When she asked Higuera about the deduction, Maria said, ‘If you don’t ask you will not hear what you don’t want to hear’. Gendusa proceeded to complete the tax return based on the information given.

3 John Ortberg, Auktoriserad Revisor (AR), has incorporated and adopted the name Tax Refunds.

4 Aki Watanabe, Konin Kaikeishi, has recently been convicted of falsifying his own personal income tax returns.

5 Janos Hummel, Auditor, has not received any accounting fees from Phi Company for the last six months. As a result, Hummel has withheld the client’s records until the payment is received.

6 Jennie Lazaris, Statautoriseret Revisor, has accepted an engagement to study the Newbre Hospital Supply company data-processing system. Lazaris has very limited computer experience and does not have the expertise to complete the engagement.