Frank Croasdale and Martin Pinot are working feverishly to start an online business, Virtual Excellence, that will provide administrative services to small businesses. Virtual Excellence will be established as a partnership. Frank plans to invest $100,000 in the business while Martin is contributing $250,000. Martin's higher cash contribution is a result of Frank's previous online business experience and extensive business network. Frank's experience and contacts are critically important to the success of this new venture. Frank asked your CPA firm, Action Accountants, LLC, to handle the organizational details of the new business, including determination of each partner's percentage of business ownership. You and Frank have been friends and business associates for many years.

Because of your close relationship with Frank, you know that Frank has a long-standing medical condition, one that has worsened in recent years and will prevent him from active involvement in the business. When you asked Frank to tell Martin about his condition, he refused. He also has forbidden you from disclosing this information to Martin on the grounds of confidentiality.

Instruction: Responses should include and incorporate concepts and ideas From the AICPA Code of Professional Conduct , Regulation of U.S. CPAs, Regulation of Tax services

Question: Is a conflict of interest present in this engagement? If present, can it be remedied? Does a duty to disclose Franks health condition to Martin exist? Can you perform this professional engagement?