Each of these are real-life situations involving possible AICPA Code violations. For each one, state three things: 1. what rule is applied to the situation; 2. whether it is a violation of the Code or not and if so 3. explain the nature of the violation.

1. Jenkins and Rosenberg, CPAs is performing consulting services to help management of Mount Olive Global Services streamline its production operations. Jenkins and Rosenberg structured the fee for this engagement to be a fixed percentage of costs savings that result once the new processes are implemented. Jenkins and Rosenberg perform no other services for Mount Olive Global Services.

2. Betty Smith is a financial analyst in the financial reporting department of Raleigh Technologies International, Inc., a privately held corporation. Betty was asked to prepare several journal entries for Raleigh, Inc. related to transactions that have not yet occurred. The entries are reflected in financial statements that the company recently provided to the bank in connection with a loan outstanding due to the bank.

3. Matthews and Morris, a regional CPA firm, is providing information systems consulting to one of their publicly traded audit clients. They are assisting in the implementation of a new financial reporting system selected by management.

4. Joy Foster has been serving as the senior auditor on the audit of Carolina BioHealth, Inc. Because of her outstanding work, the head of the internal audit at Carolina Biohealth extended her an offer of employment to join the internal audit department as an audit manager. When the discussions with Carolina Biohealth began, Joy informed her offices managing partner and was removed from the audit.