TRUE OR FALSE

2. The AICPA Code of Professional Conduct would prohibit a CPA from placing the following advertisement: We will guarantee a refund on your tax return or we wont charge for ourservices.

3. Three examples of acts discreditable under the AICPA Code of Professional Conduct include: cheating on the CPA Exam, failing to file or lying on your tax return, and telling your spouse some scandalizing information about your client without permission.

4. Suppose a CPA firm does the audit of a public university. The CPA firms independence is impaired if Sally, a partner in the Spokane office of a regional CPA firm, is also the in-house expert on public universities for the whole firm (she reviews all of these audits), and she has a non-dependent son who is the controller of a public university whose audit is done by the Tri-Cities office of the CPA firm.

5. The CPA firms independence is impaired if Jon, a staff assistant, works on the audit of a client whose controller is Jons cousin.

6. CPA firms must compensate employees for overtime (e.g. during busy tax season) by paying them an hourly rate of time and half; the firms cannot allow employees to accumulate an overtime bank from which to take extra paid vacation during less busy times.