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Each of the following situations involves possible violations of the AICPA Code of Professional Conduct. For eachsituation, state whether it is a violation of the Code. In those cases in which it is aviolation, explain the nature of the violation and the rationale for the existing rule. LOADING...(Clickthe icon to view the situations involving possible violations of the AICPA Code of Professional Conduct.)

a.	The audit firm of Miller andYancy, CPAs, has joined an association of other CPA firms across the country to enhance the types of professional services the firm can provide. Miller and Yancy share resources with other firms in theassociation, including audit methodologies and auditmanuals, and common IT systems for billing and time reporting. One of the partners in Miller and Yancy has a direct financial interest in the audit client of another firm in the association.
b.	BruceSullivan, CPA, is the audit partner on the engagement of XyliumCorporation, which is a public company. In structuring the agreement with the audit committee for the audit ofXylium's financialstatements, Sullivan included a clause that limits the liability ofSullivan's firm so that shareholders of Xylium are prohibited from suing Sullivan and the firm for performance issues related to the audit.
c.	Connor Bradley is the partner in charge of the audit of Southern Pinnacle Bank. Bradley is in the process of purchasing a beach condo and has obtained mortgage financing from Southern Pinnacle.
d.	JenniferCrowe's audit client has a material investment inPolex, Inc.Jennifer's non-dependent parents also own shares inPolex, and Polex is not an attest client ofJennifer's firm. The amount of herparent's ownership in Polex is not significant toJennifer's net worth.
e.	Joe Stokely is a former partner in Bass andSims, CPAs.Recently, Joe left the firm to become the chief operating officer of LacyFoods, Inc., which is an audit client of Bass and Sims. In his newrole, Joe has no responsibilities for financial reporting. Bass and Sims made significant changes to the audit plan for the upcoming audit.
f.	Odonnel Incorporated has struggled financially and has been unable to pay the audit fee to itsauditor, Seale andSeale, CPAs, for the 2011 and 2012 audits. Seale and Seale is currently planning the 2013 audit.
g.	Jessica Alma has been serving as the senior auditor on the audit of CarolinaBioHealth, Inc. Because of her outstandingwork, the head of internal audit at Carolina BioHealth extended her an offer of employment to join the internal audit department as an audit manager. When the discussions with Carolina BioHealthbegan, Jessica informed heroffice's managing partner and was removed from the audit engagement.
h.	Morris andWilliams, a regional CPAfirm, is providing information systems consulting to one of their publicly traded audit clients. They are assisting in the implementation of a new financial reporting system selected by management.
i.	Audrey Glover is a financial analyst in the financial reporting department of TechnologiesInternational, a privately held corporation. Audrey was asked to prepare several journal entries for Technologies International related to transactions that have not yet occurred. The entries are reflected in financial statements that the company recently provided to the bank in connection with a loan outstanding due to the bank.
j.	Austin andHouston, CPAs, is performing consulting services to help management of McAlister Global Services streamline its production operations. Austin and Houston structured the fee for this engagement to be a fixed percentage of costs savings that result once the new processes are implemented. Austin and Houston perform no other services for McAlister Global.

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Complete the table below to identify whether or not there was a code violation for each situation a. throughj., and ifso, whatcode(s) was(were)violated, and an explanation of the violation. Use the list of possible explanations of violations given below for your"Explanation ofviolation" responses. (If no violationoccurred, select"No" in the"Violation ofCode?" column and leave all other columnsblank.) LOADING...(Clickthe icon to view the possible explanations ofviolations.)

1.	When audit firms create a network with other firms to share certaincharacteristics, such as the sharing of audit methodologies and auditmanuals, interpretations of the Code require each network firm to be independent of audit and review clients of other network firms. The ownership by a firm who are partners in one of the network firms in the stock of a client of another network firm would impair independence.
2.	When audit firms create a network with other firms to share certaincharacteristics, such as the sharing of audit methodologies and auditmanuals, interpretations of the Code require each network firm to be independent of audit and review clients of other network firms. The ownership by a firm who are partners in one of the network firms in the stock of a client of another network firm would impair objectivity and client confidentiality.
3.	An interpretation of the Code prohibits the inclusion of indemnification clauses and other limitations of liability provisions in engagement letters for audit and other attest services.
4.	An investment by a client in a firm that is also an investment of a related party to the CPA firm constitutes a violation of independence according to interpretations of the Code.
5.	An interpretation of the code states that no member oftop-level-management can be a former employee of the auditing firm.
6.	Interpretations and rulings note that independence is impaired if billed or unbilled fees remain unpaid for professional services provided more than six months before the date of theauditor's report.
7.	Interpretations and rulings note that independence is impaired if billed or unbilled fees remain unpaid for professional services provided more than one year before the date of theauditor's report.
8.	Only new andpre-existing mortgage loans provided by a new audit client that is a bank are permissible.
9.	Onlypre-existing mortgages provided by a new audit client that is a bank are permissible. No new mortgage loans arepermitted, however.
10.	Being offered a job from a client constitutes a discreditable act.
11.	The Code prohibits the solicitation and disclosure of the Uniform CPA examination questions and answers without permission of the AICPA.
12.	Two rules are violated whereby an individual knowingly included false and misleading transactions in the financial statements that were provided to the bank.
13.	Setting a fee based on financial results is in violation of multiple rules of the Code.
14.	Providing financial information systems design and implementation services to apublicly-traded client is prohibited under independence rules.

Situtation	Violation of Code?	If Yes - Rule(s) violated	Explanation of violation
a.
b.
c.

d.
e.
f.

g.
h.
i.
j.