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Ethics. The CPA encounters various situations that fall under ethical rules that prescribe or proscribe certain acts. Comment on the following situations and state what

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Ethics. The CPA encounters various situations that fall under ethical rules that prescribe or proscribe certain acts. Comment on the following situations and state what the CPA should do in each case. a. A CPA receives no compensation for preparing the income tax return of a neighbor. The neighbor requests that the CPA sign the preparer's declaration. b. A CPA prepares a Form 1120 for a corporation, but is unable to show a breakdown of the compensation of officers due to lack of information. c. A CPA assists a corporate client through an audit of a return in which it is found that an officer has received unreasonable compensation. No prospective statements are made by the IRS that specifically deal with future years. The CPA is currently assisting the client in the preparation of a current income tax return for a period when the same officer received the same compensation for the same amount of work. d. A CPA has knowledge of an error in the ending inventory of a prior year. The CPA is asked to prepare the return for the current year

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