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Each of the following situations involves a possible violation of the AICPAs Code of Professional Conduct . For each situation, state the applicable section of
- Each of the following situations involves a possible violation of the AICPAs Code of Professional Conduct. For each situation, state the applicable section of the rules of conduct and whether it is a violation. Analog
- Emrich, CPA, provides tax services, management advisory services, and bookkeeping services and conducts audits for the same nonpublic client. Because the firm is small, the same person often provides all the services.
- Franz Marteens is a CPA, but not a partner, with 3 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.
- A nonaudit client requests assistance of M. Wilkenson, CPA, in the installation of a local area network. Wilkenson had no experience in this type of work and no knowledge of the clients computer system, so he obtained assistance from a computer consultant. The consultant is not in the practice of public accounting, but Wilkenson is confident of his professional skills. Because of the highly technical nature of the work, Wilkenson is not able to review the consultants work.
- In preparing the personal tax returns for a client, Sarah Milsaps, CPA, observed that the deductions for contributions and interest were unusually large. When she asked the client for backup information to support the deductions, she was told, Ask me no questions, and I will tell you no lies. Milsaps completed the return on the basis of the information acquired from the client.
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