Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct. For each situation, state the applicable rule of con- duct and whether it is a violation.

Roberta Hernandez, CPA, serves as controller of a U.S.-based company that has a significant portion of its operations in several South American countries. Certain government provisions in selected countries require the company to file financial statements based on international standards. Roberta oversees the issuance of the companys financial statements and asserts that the statements are based on international financial accounting standards; however, the standards she uses are not those issued by the International Accounting Standards Board

Answer 1 Choose... Franz Marteens is a CPA, but not a partner, with three years of professional experience with Roberts and Batchelor, CPAs. He owns 25 shares of stock in an audit client of the firm, but he does not take part in the audit of the client, and the amount of stock is not material in relation to his total wealth.

Answer 2 Choose... Archer Ressner, CPA, stayed longer than he should have at the annual holiday party of Ressner and Associates, CPAs. On his way home he drove through a red light and was stopped by a police officer, who observed that he was intoxicated. In a jury trial, Ressner was found guilty of driving under the influence of alcohol. Because this was not his first offense, he was sentenced to 30 days in jail and his drivers license was revoked for one year.

Answer 3 Choose... Emrich, CPA, provides tax services, management advisory services, and bookkeep- ing services and also conducts audits for the same nonpublic client. Because the firm is small, the same person often provides all the services.

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