Cases to apply the rules or principles of the AICPA code of conduct. You can indicate whether or not the code is violated, whether it is a rule or principle. If you believe that a rule or principle is violated, please write it down.

1. A CPA sole practitioner purchased stock in a client corporation and placed it in a trust as an educational fund for the CPA's minor child. The trust securities were not material to the CPA but were material to the child's personal net worth. Would the independence of the CPA be considered to be impaired with respect to the client?

2. Maggie and Alba are sisters. Maggie is a CPA auditing the company where Alba works. Alba is the internal auditor of the company where Maggie has been assigned to be the auditor in charge.

3. Armando, CPA, is a staff auditor participating in the engagement of Capital Trust, Inc. Armando father is an internal auditor employed by Capital Trust.

4. An auditor's independence is considered impaired if the auditor has a joint, closely held business investment with the client that is material to the auditor's net worth.

5. A CPA firm should decline an offer to perform consulting services engagement if acceptance would require the CPA firm to make management decisions for an audit client.

6. Harry Brown is a partner in the Topeka office of Hedley & Co., CPAs. Harry's brother is employed in an audit-sensitive position by Jensen Appliances, a publicly held company in Kansas. Jensen Appliances is one of Hedley & Co.'s audit clients. Neither Harry nor personnel from the Topeka office is involved in the audit of Jensen.