Tom, a CPA, is discussing the audit plan for his new client with the senior auditor on the engagement. The client firm is a small publicly listed company that explores precious metals in northern Canada. The company has not been successful in finding any precious metals to date, but it is currently actively exploring several properties which, management claims, have a very high potential. The management recently dismissed its predecessor audit firm, and after appropriate inquiry of the predecessor firm, Tom agreed to take on the engagement. Tom tells the senior auditor that while the business risk of the company is very high, there is little risk associated with the audit itself since almost all the recorded transactions are disbursements, with only incidental revenues from the company's financial investments. Tom also tells the senior auditor that, while management appears to be less than candid in assessing the company's prospects, this type of information will appear in the management discussion and analysis part of the annual report "which is not our concern." Finally, Tom tells the senior auditor: "Keep your questions to management focused on what we're here to do - which is to give an opinion on the financial statements, not to get involved in their business affairs."

Please discuss whether Tom has violated Code of Professional Conduct, Generally Accepted Auditing Standards, or other standards.