Soldera, CPA, is performing management advisory services for a client whose shares are publicly traded. Soldera learns that the client's financial statements issued in the previous fiscal year, on which another CPA firm gave an unmodified opinion, were materially misstated due to a failure to record certain liabilities. These audited statements were issued 6 months ago. Soldera therefore informs the client and the provincial securities commission (at the same time) about the misleading financial statements.

For many years, Garfield, CPA, has compiled the financial statements of his sister's shoe store, Those Shoes Inc., and has issued an appropriate notice to reader. He also provides his sister with free tax advice, but does not prepare the store's tax returns. This year, his sister wants to obtain a bank loan, and she asks her brother to review the store's financial statements and submit his review engagement report to the bank. Garfield, however, does not want to get involved in assurance services for the store, and instead recommends a CPA friend who does not know his sister.

For each situation, can you indicate whether the CPA-Canada Code of Ethical Principles and Rules of Conduct has been violated or not violated. Explain your reasoning.