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For each situation, state whether it is a violation. Where there is a violation, explain the nature of the violation and the rationale for the

For each situation, state whether it is a violation. Where there is a violation, explain the nature of the violation and the rationale for the existing rule. Where there is no violation, explain the rationale for the existing rule and why it is not a violation.

  1. Patrick, a PA, has an audit client, Duramax Inc, which uses another public accounting firm for management services work. Unsolicited, Patrick sends his firm's literature covering its management services capabilities to Duramax Inc, on a monthly basis.
  2. Zidan leased several vehicles from his friend Rodney. Rodney said that he would give Zidan a $200 commision for each referral. Zidan referred to Rodney several clients who were interested in leasing vehicles. After a few months, Zidan was pleased to receive a cheque for $3,000 in the mail. Several of is clients had decided to change automobile leasing companies.
  3. Trudeau completed for his client financial projections that covered a period of three years. Trudeau was in a hurry and inadvertently stated that they covered five years; so he re -did the client's calculation, rather than checking assumptions and doing field work, even though he attached an assurance report.
  4. Costa, a Public Accountant, has sold his public accounting practice, which includes bookkeeping, tax services, and auditing to Hazard, a PA. Costa obtained permission from all audit clients for audit-related working papers before making them available to Eden. He did not get permission before releasing tax-and management services-related working papers.

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