Required: For each separate case, state whether the action or situation shows a violatio Code of Professional Conduct; if so, explain why and cite the relevant rule or iolation of the AICPA t rule or interpretation audit last year n of th a. Your client, Contrary Corporation, is very upset over the fact that your auin failed to detect an $800,000 inventory overstatement caused by employee theft sification of the records. The board discussed the matter and authorized its atto explore the possibility of a lawsuit for damages. ed its attorneys b. Contrary Corporation filed a lawsuit alleging negligent audit work, seeking SI millionis damages c. In response to the lawsuit by Contrary, you decided to bring litigation against certin officers of the company alleging management fraud and deceit. You are asking for a damage judgment of $500,000. d. The Allright Insurance Company paid Contrary Corporation $700,000 under a fidelity bond covering an inventory theft by employees. Allright is suing your public accounting firm for damages on the grounds of negligent performance of the audit, claiming that a proper audit would have uncovered the theft sooner and the amount of loss would have been considerably less. e. Your audit client, Science Tech Inc. installed a cost accounting system devised by the consulting services department of your firm. The system failed to account properly for certain product costs (according to management), and the system had to be discontinued