assume you are an entry level at a mid size accounting firm. identify and discuss possible breaches of the Code of Professional Conduct (CPC) from the following and what the appropriate action should be. Comment on any other concerns you may have and why.:

A CPA operates as a sole proprietorship. The CPA has no staff and completes all work on their own. The CPA is the auditor of XYZ Daycare Inc. which operates a childrens daycare in Canada. XYZ has a December 31, 2021 year end and follows ASPE. Parents are required to pay for a full year of day care (September 2021 to August 2022) in advance. XYZ recorded the full amount as revenue. Most of the assets used by XYZ are leased. The bookkeeper at XYZ has recorded all amounts as operating leases when in fact they should have been recorded as capital leases. The result of these issues is that XYZ showed a significant profit when it actually had a loss. The CPA provided an unmodified opinion. A review of the CPA working papers indicated SAAE is based on extensive discussion with XYZ bookkeeper.