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For each of the following situations. state whether or not a Rule of Professional Conduct is violated. If there is a violation. briefly explain why
For each of the following situations. state whether or not a Rule of Professional Conduct is violated. If there is a violation. briefly explain why it is a violation. If there is no violation. write \"no violation.\" If two or more rules might apply. select the one that is the most directly violated. Each of the rules may be used once. more than once. or not at all. . Advertising and Other Forms of Independence Rule Accounting Standards Rule Solicitation Rule Objectiva and Integrity Rule Condential Client Information Rule Commissions and Referral Fees Rule General Standards Rule Contingent Fees Rule Form of Organization and Name Rule Compliance with Standards Rule Acts Discreditahle Rule A. Dean. CPA. gave a new cheat a fee estimate that was considerably below the actual cost of producing the audit. Joe hopes he can make up the shortfall by providing other services to this cheat. If those additional services fail to materialize. Dean gures he can pressure the client to re-aegotiate the audit fees. Kayla. CPA. provides tax services to a client who she also audits. The tax services involve both tax planning and tax preparation. The client is publiclytraded Peyton. CPA. is preparing a tax return for Rachel- Rachel is reporting a small gain on the sale of a piece of property. Because Peyton had just purchased a piece of property in the same neighborhood, she knew that the sales amount was grossly understated. When she asked Rachel about this. Peyton got an explanation which made little sense but she used Rachel's information to prepare the return- Barry. CPA. provided information about his client to another CPA who needed the information to complete an engagement. The cheat had adamantly refused permission to Barry to release this information- The other CPA has informed Barry that the information is critical to successful completion of her professional service- Pierson. CPA. provides personal nancial services for his nonattest clients. In some cases. after making a recommendationto the client. Pierson is able to broker the investment For this brokerage service. he charges a commission of which the clients are informed and sign a consent agreement. Kali. CPA. prepared a tax return for a client. When the client asked for the return. Kali refused to release it to the client until her fee had been paid- Christianna. CPA. is a director for a local charityr for which she also prepares the annual tax return (Form 990). Because the charity is a recognized aotforprot entity. no income taxes are paid Makol. CPA. refuses to release client information to a district court because it was confidential information and the client had not granted permission to release the information. Kamau. CPA. prepares the tax return for a client. His fee was set at 10% of the deductions that he was able to nd for his client. Xavier. CPA. owned all the stock of his CPA rm which had been organized as a regular corporation as allowed by the laws of his state. As a retirement present. Xavier gave 10 shares of stock to his former receptionist
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