1. Each of the following situations involves a possible violation of the MIA By-laws (On professional Conduct and Ethics).
   1. Kevin and Karen who are MIA members, formed a partnership business to provide public accounting services and named their firm “Bright Stars & Associates”.

Alia & Co is a firm of Chartered Certified Accountants that has seen its revenue decline steadily over the past few years. The firm is looking to increase its revenue and client base and so has developed a new strategy where it has guaranteed that the audits will minimize disruption to companies as they will not last longer than two weeks.

3. One of Kyle Associate’s existing clients has proposed that this year’s audit fee should be based on a percentage of their final pre-tax profit. The partners are excited about this option as they believe it will increase the overall audit fee.

4. Melly is the senior auditor in charge of the audit of a large car manufacturing company. While at the client’s premise the sales manager told her that there is a sale on new models. She has been carrying out the audit for four years, she would be entitled to a substantial discount, Melly accepted the offer.

For each of the independent situations above,

1. State whether there is a violation of non-violation of MIA Bylaws.
2. Indicate the MIA By-laws being followed or violated.
3. Provide an explanation for each.