Required: Describe the Rules of Professional Conduct violated and explain the nature of the violations.

Lily Tomlinson is the in-charge auditor on the audit engagement of Xalam Corporation, a public company. The chief financial officer of Xalam has recently called Tomlinson to ask for some advice on the accounting treatment for some complex transactions. According to the chief financial officer it would be best to get it right now rather than later. Tomlinson agrees with this and provides the advice.