CH 4- These situations involve a possible violation of the AICPA's Code of Professional Conduct. (1) determine the applicable rule from the Code (2) decide if the Code had been violated (3) explain how the situation violates (or does not violate) the Code.

a. In 2017, Jones and Bachs, both CPAs, decided to form a CPA practice. In 2018, Jones and Bachs approached Bob Dill, a physician and medical expert, and asked him to assist them with their growing medical consulting practice. Dill agreed, but only after he was given an ownership interest in the firm. Dill does not intend to quit his private medical practice.

(1 ) Rule: ________ (2) Violation? Yes No

(3) Explanation:

b. Bob Paddy has a successful dentistry practice in Chicago. Bob has recommended one of his patients to Olive Oil, CPA. To show gratitude for the referral, Olive has agreed to pay Bob a token gift of $50. Olive discloses the payment arrangement to her new clients.

Rule: ________ Violation? Yes No

Explanation:

c. The accounting firm of Page & Book, CPAs, is negotiating a fee with a new audit client. They agree the client will pay $50,000 if Page & Book issues a clean, unmodified opinion, $40,000 if a qualified opinion is issued, and only $20,000 if an adverse opinion is issued.

Rule: ________ Violation? Yes No

Explanation:

d. Dilbert Cook, CPA, is a member of the engagement team that performs the audit of Hannaford Corporation. Dilbert's five-year-old daughter, Penelope, received ten shares of Hannaford Corporation's common stock for her sixth birthday. The stock was a gift from Penelope's grammy Grinch.

Rule: ________ Violation? Yes No

Explanation:

e. Ben Look, CPA, is a partner in the CPA firm that audits Bright, Inc., a closely held corporation. Ben's sister-in-law is the chief financial officer at Bright, Inc.

Rule: ________ Violation? Yes No

Explanation: