Question
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.
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