Vincent Klein is a CPA and an employee benefits specialist on client audits with Foster & Lewis, a large public accounting firm in Denver, Colorado. One day while working on a client engagement, Klein learned about material, nonpublic information concerning the clients first earnings release after the company went public. Klein purchased securities of the client and tipped off two friends about some of the information, and both traded on Kleins communications. Klein felt obligated to do so because his stockbroker friends had informed him a year ago about the clients potential acquisition of a competitor company. Questions 1. Evaluate the ethics of trading on client securities by Klein, given that he was an employee benefits specialist on the audit. 2. Did Kleins actions violate any rules of conduct in the AICPA Code? Why or why not? 3. Do you think Klein would have any legal liability for his actions? Explain.