While performing an audit on Mega Company, Stan Stalemate, a new auditor with one of the worlds largest public accounting firms, learned of confidential and damaging financial information that will likely bankrupt the Mega Company. Just days later, Stans Aunt Hazel, an old widow and dear family friend, was visiting for the holiday. Aunt Hazel shared her good news at the dinner table that her son Walter recently was promoted to a high-ranking position with Mega Company. Aunt Hazel told everyone about Walters terrific benefit plan which grants him the right to acquire Mega Company stock for a big discount price. Aunt Hazel announced that she plans to give Walter all her money to acquire Mega Company stock. Hazel said that she has been finding it difficult meeting her monthly bills since she lost her husband two years ago so she believes this investment strategy is her answer. Hazel leans over to Stan at the dinner table and whispers, What do you think Stan good idea?

Who are the stakeholders in Stan's decision?

What are the primary alternatives Stan has in responding to Aunt Hazel? (Identify at least three.)

Do any of the alternatives violate the AICPA Code of Professional Conduct? If so, which rule and explain why?

How should Stan respond to Aunt Hazel and why?