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Author Question: The following situations involve a possible violation of the AICPA'sCode of Professional Conduct. ... (Read 95 times)

ncasson210

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on: Aug 21, 2022
The following situations involve a possible violation of the AICPA's Code of Professional Conduct. For each situation, (1) determine the applicable rule from the Code, (2) decide whether or not the Code has been violated, and (3) briefly explain how the situation violates (or does not violate) the Code.

a. Howard Cunningham & Co., CPAs, designates its firm as "Members of the American Institute of Certified Public Accountants." All of the partners of the firm are CPAs. However, one of the partners has recently chosen to allow her membership to lapse because of personal reasons.


Explanation:

b. Brad Long, CPA, was traveling from Orlando to Miami, Florida when he was pulled over by a police officer on suspicion of driving under the influence. He was convicted in court of driving while under the influence of alcohol. Because of past convictions, Brad was sentenced to 5 years in prison.


Explanation:

c. Kelley Brent, CPA, is a partner in a one-office CPA firm that audits Dane, Inc., a closely held corporation. Kelley's sister was recently appointed as the chief financial officer for Dane, Inc.


Explanation:

d. Sarah Martin, CPA, is a senior auditor in the San Francisco office of Cooper & Howell, CPAs. Sarah's father is employed as the controller of Line Electronics, a public company in Detroit, Michigan. Line Electronics is one of the firm's audit clients. Neither Sarah nor the San Francisco office is involved in the audit of Line Electronics.


Explanation:

e. On August 20, 20x9, Min Lee, CPA and partner, was offered and accepted the engagement to audit the annual financial statements of Jernigan Corporation for the year ended December 31, 20x7. Preliminary work began on the audit on September 15, 20x7 and the engagement ended on March 7, 20x8. Jernigan is regulated by the SEC. Min served as controller of Jernigan Corporation from December 1, 20x2, until April 10, 20x7, at which time she terminated her employment with Jernigan.


Explanation:
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Marked as best answer by ncasson210 on Aug 21, 2022

feiojef

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Reply #1 on: Aug 21, 2022
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ncasson210

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Reply 2 on: Aug 21, 2022
Great answer, keep it coming :)

bdobbins

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Reply 3 on: Yesterday
Wow, this really help

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