Exercise 1: Each of the following situations involves violation of the rule on independent. For each ble Situation. )- Decide whether the Code of professional Con- duct has been violated. 2- Breifly explain how the situation violates (or does not violate) the Code of professional Conduct. a- Ali is apartner in the professional office of ABC Company CPAs. Ali's brother is employed in an auclit sensitive position by JA, a publicly, Company in Amman. JA is one of ABC audit client. Neither Ali nor personnel from the professional office is involved in the audit of JA. held b. Sami is an audit manager with xy2 Co. CPAs. a one-office CPA firm. Sami owns 100 shares of Common stock in one of the firm's audit clients, but he does not provide any audit or non-audit Services to the Company. C. The accounting firm of ABC, CPAs, provides bookkeeping and tax services for MX Corporat- ion, aprivately held Company. ABC also perfor- ms the annual audit of MX Corporation -2- d. Rami CPA, is the auditor of XL. A couple of weeks ago. XL's management Commenced liti negligent gation against Rami, alleging he was in last year's audit. e. MG Company has not paid Omar CPA. his audit fee for the past two years. Omar is starting Work on the Current year's audit of MG.