The Ethics Committee of the Podunk CPA Society (an Ethics Charging Authority) received a complaint from Ms. Mildred May, 123 Lovely Lane, Hartsville, Podunk concerning Maurice Jones, CPA of Jones and Jones, CPAs also located in Hartsville. Ms. May owns a Floral Shop in town and states in her complaint that in May of 2014 she decided to change CPAs. From about January of 2011 until May of 2014 Mr. Jones had been preparing monthly reports and filing tax returns for Ms. May. In May of 2014 she hired her nephew (who had just opened his own office,) Mr. Carl Cross to do her accounting and tax services. In her complaint dated June 30, 2014 she alleges that Mr. Jones will not release the appropriate QuickBooks data files to her new accountant, Mr. Cross. In her complaint she states that both she and her nephew have contacted the predecessor CPA several times by phone and e-mail.

You are the investigator assigned to this case and have determined that:

Mr. Jones is a Member of the Podunk CPA Society, but not the AICPA.

Mr. Jones has been contacted by Ms. May and Mr. Cross several times during the period May of 2014 through June 30.

Mr. Jones did return all client source documents (hard copy) and copies of all deliverables-monthly reports (hard-copy) via US Mail on June 15, 2014. He sent everything certified mail and has a receipt.

Ms. May acknowledged receipt of the above, but needs the QuickBooks data files.

Mr. Jones did use QuickBooks to prepare monthly reports for the Floral Shop, but asserts that since he did the work (inputting the data etc.) the data files are his and has not sent them to either Ms. May nor her nephew.

1. In your opinion which Rule(s) or Section(s) of the AICPA Code of Professional Conduct has Mr. Jones allegedly violated? Please provide direct quotes of the rules or sections (cut and paste) that SPECIFICALLY address this situation including quotation marks and citations from the current AICPA Code of Professional Conduct

2. Describe your finding (Basically Violation or No Violation) and the reasons for it in a well-developed paragraph. Just to review, your choices are:

No violation

No further action

Expulsion

Suspension

Admonishment

Letter of Corrective Action

Would your sanction include CPE or publication? Explain/expand.