You are a manager for David and Blue, LLP, a public accounting firm which has 10 offices and 30 partners. An expert in ethics and professional conduct, you have been contacted by various individuals in the firm and have been asked to provide advice.

Situation A (4 marks)

Jamie, CPA is an audit senior. He has just has just called you for advice. He was at his desk when he overheard his colleague Teresita having a phone conversation. She told the person on the other end of the call that Drake Co. Ltd., a public company listed in the Toronto Stock Exchange, and one of the firm's largest audit client, is about to release the company's audited annual financial statements and the results are spectacular. Teresita said that she just bought some shares as she expects that the share price will go up.

Situation B (4 marks)

An advertisement has been drafted as part of the firm's drive to attract more clients. It is suggested it should be placed in the two national newspapers as well as local newspapers.