You are an associate at ABC LLP, a forensic accounting firm.Your company is retained by the Law Firm that is representing a client.The client, the former CFO of the Public Company, is being investigated by the SEC and FBI for apparently running a large accounting fraud scheme and funneling money to his own account through wire transfers after allegedlyfalsely invoicing sales during 2013 and 2014.The apparent account fraud scheme may have artificially inflated the company's stock price by 25% during 2013 and 2014.The Auditing Firm audited the Public Company and issued opinion letters in connection with the Public Company's 2013 and 2014 annual reports.

You are just getting up to speed on the case, but the ABC Partner asked for you to help analyze the issue in connection with the Law Firm.

1. Identify at least five SEC statutory sectionsorrulesthat the CFO violated.

2.Identify the SEC rule that might have applied to the Auditing Firm if it was aware of potential misconduct during the course of its audit 2013 and 2014.Discuss the rule, including by providing specific guidance to the audit firm on how it should proceed