1) Which of the following situations indicate whether it violates the AICPA's Code of Professional Conduct. If it violates the Code, indicate the rule is most directly violated and explain why. That is, I want you to select the rule that is most clearly violated by the specifics of the case. If you don't think it violations a rule, explain why as well. Use the rule numbers cited in the text and not paragraph numbers from the codification. In all cases you are a CPA and member of the AICPA.

a) You are a former partner for Sullivan and Peters, CPAs. You left that firm two years ago and to become the CFO for one of its financial services clients. While you worked for Sullivan and Peters, you were the only expert in the financial services industry. Therefore, Sullivan and Peters have maintained a relationship with you and occasionally pays you consulting fees to advise them on their financial service client audits.

b) You provide a variety of non-audit services to one of your audit clients to include bookkeeping and tax preparation. You also provide informal advice on tax planning issues for the client's management and sometimes attend their Board of Directors meetings. The client's CEO considers you one of the firm's major business advisors. The client is not publicly traded.

c) You have just completed your first audit of a new client. During the audit, you identified an area of their tax return that you believe could be handled differently that would result in a refund for the client. You offer to advise them on preparing a amended tax return and state that you will charge them 50% of any refund that they obtain by following your advice. The client accepts your offer.

d) You are working to build you client base of non-profit organizations for the CPA firm of which you are a partner. You take out an ad in a local newspaper where you claim that you audit 40% of the largest non-profit organizations in the region. You also state that your average fees when related to the size of the non-profits you audit is the lowest in the region.