MGA C10 Term Test Practice Multiple Choice Questions {MCI-ts] 1. Which one of the following represents a breach of the CPA Code of Professional Conduct? El. CPA is preparing financial statements that are to be used solely for income tax purposes and accepts an estimate of inventory prepared by the client which CPA knows to be signicantly lower than the actual amount of inventory on hand. CPA does not request that management adjust the inventory amount. b. CPA places an advertisement that details the types of services provided by CPA's C. :1. rm. CPA has only provided the successor auditor access to the necessary information in her audit les. CPA firm is representing two sides of a merger of two companies, however has obtained formal letters from each client discussing that they are aware of the fact and are comfortable with allowing CPA firm to provide both services. CPA firm has also instituted formal safeguards to ensure the engagements are completed separately and no information is shared