Experts Accountants CPA Firm ( EA ), hired an advertising firm to help rise revenues One of the ads that the firm ran misrepresented the experience of EAs accountants Another ad stressed that E A had so many former Income Sales Tax Department agents working in its tax division that the Income Sales Tax Department wouldn't dare look closely at the tax returns prepared by E A Billy , a n EA accountant, was careful with his clients confidential information, but his administrative assistant, Suzan , was not Su z an was responsible for several disclosures of client confidential information The firm became upset with these disclosures and fired B illy for not preventing them B illy , now that he was no longer an accountant for any of his former clients, began disclosing their confidential information with reckless abandon B illy had been a workhorse for EA and once the firm had fired him, it soon was substantially behind on its tax work It assigned some of the tax work out to another firm, pursuant to a contract under which the other firm would ensure that it had state of the art procedures for ensuring confidentiality and promised to keep all of E A's clients information confidential E A also received the permission of each of its clients to outsource their tax work The EA wishes to audit ABC Co , a private company, on a contingent fee basis EA wishes to do XYZ Company's original tax return on a contingent fee basis Requirements Analyse E A's situation and answer each of the following questions 1 Is E A in trouble because of misleading advertising done not by E A but by its advertising firm 2 Does the ad mentioning the former Income Sales Tax agents working for E A create any problems 3 Can B illy be in trouble for his assistant's breaches of confidentiality 4 Can B illy be in trouble for disclosing confidential information of firms that are no longer his clients 5 Is EA going to be in trouble should one of the firms to which it outsourced tax work happen to disclose one of E A's client's confidential information 6 Should EA get permission from its clients to outsour c e their tax work before doing so 7 Is EA permitted to audit ABC Co a private company on a contingent fee basis 8 Is EA permitted to do XYZ Company's original tax return on a contingent fee basis if XYZ Company is a client not a client of EA

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Experts Accountants CPA Firm ( EA ), hired an advertising firm to help rise revenues   One of the ads that the firm ran misrepresented the experience of EAs accountants  Another ad stressed that E A had so many former Income   Sales Tax Department agents working in its tax division that the Income   Sales Tax Department wouldn't dare look closely at the tax returns prepared by E A  Billy , a n EA accountant, was careful with his clients confidential information, but his administrative assistant, Suzan , was not  Su z an was responsible for several disclosures of client confidential information  The firm became upset with these disclosures and fired B illy for not preventing them  B illy , now that he was no longer an accountant for any of his former clients, began disclosing their confidential information with reckless abandon  B illy had been a workhorse for EA and once the firm had fired him, it soon was substantially behind on its tax work  It assigned some of the tax work out to another firm, pursuant to a contract under which the other firm would ensure that it had state of the art procedures for ensuring confidentiality and promised to keep all of E A's clients information confidential  E A also received the permission of each of its clients to outsource their tax work  The EA wishes to audit ABC Co , a private company, on a contingent fee basis  EA wishes to do XYZ Company's original tax return on a contingent fee basis  Requirements  Analyse E A's situation and answer each of the following questions   1  Is E A in trouble because of misleading advertising done not by E A but by its advertising firm  2  Does the ad mentioning the former Income   Sales Tax agents working for E A create any problems  3  Can B illy be in trouble for his assistant's breaches of confidentiality  4  Can B illy be in trouble for disclosing confidential information of firms that are no longer his clients  5  Is EA going to be in trouble should one of the firms to which it outsourced tax work happen to disclose one of E A's client's confidential information  6  Should EA get permission from its clients to outsour c e their tax work before doing so  7  Is EA permitted to audit ABC Co  a private company on a contingent fee basis  8  Is EA permitted to do XYZ Company's original tax return on a contingent fee basis if XYZ Company is a client not a client of EA

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Experts Accountants CPA Firm ( EA ), hired an advertising firm to help rise revenues . One of the ads that the firm ran misrepresented

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