Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Landon is a CPA who works at a public accounting firm. He is attending his spouses staff party. At the party, Landon has several discussions

Landon is a CPA who works at a public accounting firm. He is attending his spouses staff party. At the party, Landon has several discussions with the party attendees, including the following:

a) While speaking to his spouses boss, Suzette, Landon discovers that their food supplier, Food Plus, is also a client of Landons firm. Landon mentions that last week he was working on Food Pluss tax return and that the company has had significant CRA penalties for non-compliance in the past. Suzette is now concerned that the food supplier may be going out of business.

b) Kevin, a co-worker of Landons spouse, hears that Landon is a CPA and asks for advice. Kevin has a side business that incurs significant research and development expenses. He would like to hire Landons firm to determine whether his business can claim any scientific research and experimental development tax credits. Landon knows his firm has turned down this work in the past because of its lack of expertise; nevertheless, he agrees to meet with Kevin to gather the information required to complete the work.

c) Landon runs into Naveen, a friend, and client, at the party. Naveen is appreciative that Landon completed the tax returns so quickly for his two businesses last year. Landon mentions that normally he requires supporting documentation to complete a clients tax return, which takes time for clients to produce and for him to organize. As Naveen is such a good friend, Landon was happy to complete the tax return based on his word, and therefore it made the tax preparation process much faster.

Required: For each independent scenario, state whether or not the action or situation violates any ethical principles in the CPA codes of professional conduct, and explain why or why not.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

After The Quality Audit Closing The Loop On The Audit Process

Authors: J. P. Russell, Terry Regel

2nd Edition

0873894863, 978-0873894869

More Books

Students also viewed these Accounting questions

Question

What is quality of work life ?

Answered: 1 week ago

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago