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The following situations involve Shirley Gaas, Bryan Qian, Yu Jiang and Brett Thompson, staff accountants with the CPA firm of Sumikawa and Zhu. 1. The
The following situations involve Shirley Gaas, Bryan Qian, Yu Jiang and Brett Thompson, staff accountants with the CPA firm of Sumikawa and Zhu. 1. The bookkeeper of Ke Manufacturing Company, a non-public company, resigned two months ago and has not been replaced. As a result, Ke's transactions have not been recorded and the books are not up to date. To comply with the terms of a loan agreement, Ke needs to prepare interim financial statements, but it cannot do so until the books are posted. Ke needs the help of its independent auditors, Sumikawa & Zhu, and wants to borrow Shirley Gaas to perform the work because she was the senior on last year's audit. 2. Bryan's older brother James is on the internal audit staff of the Zhao Corporation. Bryan is a staff associate on the audit of Zhao. James is located in another city and the two brothers do not interact during the audit. Required For each situation, discuss whether there was or has not been any violation of ethical conduct. Support your answers by reference to the AICPA Code of Professional Conduct
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