Chapter 19 Case. Each of these are real-life situations involving possible AICPA Code violations. For each one, state three things: 1. what rule is applied to the situation; 2. whether it is a violation of the Code or not and if so 3. explain the nature of the violation.

5. Odyssey Inc. has struggled financially and has been unable to pay the audit fee to its auditor, Singletary and Singletary, CPAs, for the 2014 and 2015 audits. Singletary and Singletary are currently planning the 2016 audit.

6. Joe Staples is a former partner in Baker and Simpson, CPAs. Recently, he left the firm to become chief operating officer of the Food Lion, Inc., which is an audit client of Baker and Simpson. In his new role, Joe Staples has no responsibilities for financial reporting. Bake and Simpson made significant changes to the audit plan for the upcoming audit.

7. Jennifer Carsons audit client has a material investment in Solex, Inc. Carsons nondependent parents also own shares in Solex, and Solex is not an attest client of Carsons firm. The amount of her parents ownership in Solex is not significant to Carsons net worth.

8. Omar Bishop is the partner in charge of the audit of Southern Bank. Bishop is in the process of purchasing a beach condo and has obtained mortgage financing from Southern Bank.