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Candlestick CPA firm is currently representing a husband and wife in a divorce settlement case. Candlestick is a relatively large CPA irm. Top management of

image text in transcribed Candlestick CPA firm is currently representing a husband and wife in a divorce settlement case. Candlestick is a relatively large CPA irm. Top management of Candlestick are meeting to discuss whether or not a conflict of interest may exist in this case because they re representing both parties in the divorce settlement. Which of the statements below is true regarding Candlestick's best option in his case? To avoid liability in this case, Candlestick is required under the AICPA Code of Professional Conduct to apprise each party in writing of the representation of the other party. Candlestick must determine if its size will objectively allow two separate engagement teams to represent each client in the divorce case. Candlestick is required to immediately refer one of the two parties in the divorce case to another CPA firm. Under the AICPA Rules of Professional Conduct, Candlestick is prohibited from representing both parties, as this represents a conflict of interest for the firm

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