1. Jose, CPA, serves as the partner-in-charge of the external audit of Get 'em Going Travel Agency, which is publicly traded on the New York Stock Exchange. Jose's friend, Ralph, is going through financial difficulties. Joe becomes aware of crucial information about Get 'em Going which he passes on to Ralph. Ralph uses the insider tips to make profitable trades on the travel agency's stock, resulting in $12 million in profits. He gives Jose a solid gold Rolex watch as a thank- you, but otherwise Joes does not personally profit from the insider information.

a. Jose has not violated the Code of Conduct since he did not personally profit from trade on his client's stock.

b. Jose has violated the Rules of Professional Conduct since he did not maintain client confidentiality.

c. Allorthe above.

d. None of the above.

1. Mark is preparing the annual tax return for Yummy Catering Company and accidentally discovers through a third party that the owners of Yummy are charging personal expenses such as vacations, home renovation, college tuition and cars for their children through their business. The expenditures have been hidden in a variety of capital asset accounts. Mark withdraws from the engagement, but then is later contacted by one of his friends, Chris, CPA, who is the successor tax preparer on the yummy account. MARK should:

a. Spill the beans on Yummy and tell Chris to resign from the engagement as quickly as possible.

b. Suggest to Chris that he ask Yummy for permission so that Mark can discuss all matters freely with him.

c. Stay silent even if Chris receives permission from Yummy.

d. None of the above.

1. Shawn, a self-employed GPA, has experienced financial difficulties recently due to a gambling addiction and has not filed her tax return or paid estimated taxes for the past three years. She does not qualify for any "reasonable cause exceptions under the internal Revonue Code, Shown has

a. Not violated the Code of Conduct since she intends to get around to her personal tax returns eventuolly.

b. Committed an "Acts Discreditable" to the profession for falling to file her taxes and maice estimated payment in a timely manner.

c. Has a vold excuse since the only reason she hasn't paid her taxes is because of her financiol difficulties.

D. None of the above