Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4-21 (OBJECTIVES 4-5, 4-7) Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct. For each situation, state the
4-21 (OBJECTIVES 4-5, 4-7) Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct. For each situation, state the applicable rule of conduct and whether it is a violation. a. Sean Xi Lin, CPA, provides tax compliance services, secretarial services, and book- keeping services and also conducts audits for the same private company. b. Debbie Lakmaya, CPA, sells life insurance to the accounting staff of her client. c. A university professor publishes case studies on auditing based actual cases of his audit clients when he was working as an auditor in a CPA firm. The former clients are not in the know of this professor's actions. d. Magdelene Gomez used to work as an analyst at a CPA firm. 10 years ago she was one of the accountants involved in the preparation of Double U's prospectus. She left the firm a year later and became a housewife. She was not in communication with her former colleagues since her marriage. Her millionaire recently husband died and left her ten million dollars. She bought herself stock in Double U. e. Hammer Saplow, CPA, is a naturalist. He enjoys having his photos taken in the nude and loves posting his nude photos on the web. Recently a member of the audit committee of his client saw the photos and demanded the resignation of Mr. Saplow. f. Aaron Baik CPA was asked to reclassify private expenses of the managing director of his client as business expenses. Mr. Baik objected at the start but did the classification as the managing director threatened to remove Mr. Baik from future tax advisory roles in his company. g. Helen Hong CPA works as the finance director in charge of African operations of an American charity. Due to the lack of trained staff in her African offices, the financial statements of a few subsidiaries were badly prepared and not following the International Financial Reporting Standards. Due to lack of time, Helen went on with the consolidation of the financial statements. h. Jojo Gong CPA prepares the financial statements for Guns Limited. Guns Limited is a front for an international terrorist organization SPECTACLE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started