Question-2

Ben Big is a partner in the Burnaby, BC office of the national accounting firm of Price Brickhouse (PB). He owns 10,000 shares of common stock in Public, Inc., a new audit client of the firm. This amount is not material to his personal investments. The Public, Inc. audit will be performed by the Toronto office. Upon finding that PB has taken on the Public audit, Ben transfers his shares to his wifes RRSP.

Required

The situation above may involve a violation of one of the rules of professional conduct. State the rule in question and explain why or why not there is a violation of the rule. You need not refer to the rule number but should clearly describe the rule in question.