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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-

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.

Accounting firm of Rami, CPAs, is negotiating a fee with a new audit client. They agree the client will pay only $8,000 as stated fees without considering the result of the audit.

Answer 1Choose...Not Violate - Accounting principlesViolate - Compliance with standardsViolate- Acts discreditable ContingentViolate - Accounting principlesViolate - Commissions and referral feesNot Violate - Contingent FeesNot Violate - IndeoendencyNot Violate - Compliance with standards

Said has a successful dentistry practice in Wasagee. Said has recommended one of his patients to Suha, CPA. To show gratitude for the referral, Suha has agreed to pay Said a token gift of $100. Suha does not disclose the payment arrangement to her new clients.

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