Question
Please indicate whether each of the following circumstances is a violation of the Code of Professional Conduct. Explain briefly why you selected your answer. a.
Please indicate whether each of the following circumstances is a violation of the Code of Professional Conduct. Explain briefly why you selected your answer. a. The dependent child of a partner in a CPA firm owns five shares of stock in one of the partners audit clients. b. A CPA embezzles cash from his employer.
c. A CPA advertises in a local news publication. d. A CPA and the CFO of an audit client both have a material joint investment in another company. e. A CPA takes a deduction on a clients tax return that they believe is not justified, because the client requested that they do so. f. A CPA discloses information about a client in a court of law because the information was subpoenaed. g. A CPA charges an audit fee that depends on the amount of financing the client obtains. h. A CPA does not follow generally accepted auditing standards in the audit of a nonpublic US company. i. A CPA accepts a fee for referring a tax client to a local insurance agent. The CPA discloses the fee arrangement to their client. j. A CPA prepares financial statements for a client on the cash basis. The accompanying accountants report does not disclose the accounting framework applied in preparing the statements.
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