Select the rule violated of the Code of Professional Conduct in the second column. If no rule is violated select 10-no violation (this may be used once, more than once, or not at all). Rules 1 through 9 may be used either once, or not at all.
The following is a list of circumstances that might be faced by a public accounting firm. Select the rule violated of the Code of Professional Conduct in the second column. If no rule is violated select 10-no violation (this may be used once, more than once, or not at all). Rules 1 through 9 may be used either once, or not at all.
|
Circumstance |
Rule Violated |
||
|
A. |
The dependent-son of a partner in a CPA firm owns ten shares of stock in an audit client. |
1. |
Accounting principles. |
|
B. |
In preparing a tax return, a CPA takes a deduction at the client’s request that the CPA believes is not justified. |
2. |
Acts discreditable. |
|
C. |
A CPA robs a bank. |
3. |
Advertising and other forms of solicitation. |
|
D. |
A CPA owns 100 shares in a consulting client for which the firm provides no attest services. |
4. |
Commissions and referral fees. |
|
E. |
A CPA charges an audit fee that depends on the amount of credit the client obtains. |
5. |
Compliance with standards. |
|
F. |
A CPA advertises in a local newspaper. |
6. |
Confidential client information. |
|
G. |
A client knowingly issues financial statements that inappropriately and materially depart from standard. |
7. |
Contingent fees. |
|
H. |
A CPA and the president of an audit client both have an immaterial joint investment in another company. The CPA firm provides no services for the other company. |
8. |
Independence. |
|
I. |
A CPA discloses information about a client because the information was subpoenaed. |
9. |
Integrity and objectivity. |
|
J. |
A CPA does not follow generally accepted auditing standards in the audit of a nonpublic company. |
10. |
No violation. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
