Each of the following situations involves a possible violation of the Independence Rule of the AICPAs Code of Professional Conduct. Indicate whether each situation violates the Code. If it violates the Code, explain why.

a- Julia Roberto, a sole practitioner, has provided extensive advisory services for her audit entity, Leather Ltd. She has interpreted financial statements, provided forecasts and other analyses, counseled on potential expansion plans, and counseled on banking relationships but has not made any management decisions. Leather is a privately held entity.

b- Steve Rackwill, CPA, has been asked by his audit entity, Petry Plumbing Supply, to help implement a new control system. Rackwill will arrange interviews for Petrys hiring of new personnel and instruct and oversee the training of current entity personnel. Petry Plumbing is a privately held company. Petry will make all hiring decisions and supervise employees once they are trained.

c- Kraemeer & Kraemeer recently won the audit of Garvin Clothiers, a large manufacturer of womens clothing. Jock Kraemeer had a substantial investment in Garvin prior to bidding on the engagement. In anticipation of winning the engagement, Kraemeer placed his shares of Garvin stock in a blind trust.

d- Zeker & Associates audits a condominium association in which the parents of a member of the firm own a unit and reside. The unit is material to the parents net worth, and the member participates in the engagement.

e- Jimmy Saad, a sole practitioner, audited Dallas Conduit, Inc.s financial statements for the year ended June 30 and was issued stock by the entity as payment of the audit fee. Saad disposed of the stock before commencing fieldwork planning for the audit of the next years June 30 financial statements.

f- Dip-It Paint Corporation requires an audit for the current year. However, Dip-It has not paid Allen & Allen the fees due for tax-related services performed two years ago. Dip-It issued Allen & Allen a note for the unpaid fees, and Allen & Allen proceeded with the audit services.