Lance Popperson woke up in a sweat, with an anxiety attack coming on. Popperson popped two anti-anxiety pills, laid down to try and sleep for the third time that night, and thought once again about his dilemma. Popperson is an associate with the accounting firm of Hodgins and Gelman LLP. He recently discovered, through a casual conversation with Brad Snow, a friend of his on the audit staff, that one of the firm's clients managed by Snow recently received complaints that its heart monitoring equipment was malfunctioning. Cardic Systems Monitoring, Inc. (CSM), called for a meeting of the lawyers, auditors, and top management to discuss what to do about the complaints from health care facilities that had significantly increased between the first two months of 2021 and the last two months of th year. Doctors at these facilities claimed the systems shut off for brief periods and, in one case, the hospital was unable to save a patient went into cardiac arrest. Popperson tossed and turned and wondered what he should do about the fact that Beauda Medical Center, his current audit client, plans buy 20 units of Cardio-Systems' heart monitoring equipment for its brand-new medical facility in the outskirts of Beauda. Questions 1. Assume that both Popperson and Snow are CPAs. Do you think Snow violated his confidentiality obligation under the AICPA Code by informing Popperson about the faulty equipment at CSM? Explain. 2. Apply the steps in Exhibit 4.3. Ethical Conflicts and Compliance with the Rules of Conduct, and analyze whether the relationships described in this case create a conflict of interests and, if so, what safeguards should be implemented to mitigate the threat now and in the future? 3. What, if anything, should the accounting firm do about the malfunctioning equipment at Cardio-Systems Monitoring and its ethical