Adnan Hussein is a CPA working for a national firm. He is at his desk when he overhears his colleague Joan having a phone conversation. She is telling the person on the other end of the call that Gupta Co., the firm's largest audit client, is about to release its audited annual financial statements and the results are spectacular. Joan says she bought some shares as she expects that the shares price will go up.

What principles and/or rules of prpfessional conduct apply to this scenario?

a - There is a self-advocacy threat as Joan owns shares in the audit client.

b - Professional competence is lacking because Joan has disclosed information to an outside party.

c - There is no violation of any ethical principles or rules of professional conduct.

d - An auditor should not disclose client information individuals outside organization. This is a violation of the confidentiality principle.

e - Joan purchased shares after performing the audit. There is no violation of an ethical principles or rules of professional conduct; however, buying shares was illegal as she used insider information.

f - Purchasing shares in an audit client may cause independence to be impared. This may be classified as a self-interest threat.