In each of the following (independent) situations, state which AICPA Code of Professional Conduct (if any) is

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In each of the following (independent) situations, state which AICPA Code of Professional Conduct (if any) is violated by a CPA in public practice.
a. The CPA opens a tax practice and names the new firm “Jill’s Super Tax.”
b. In return for recommending a certain investment to an audit client, a CPA receives a 5 percent com-mission from the broker who sells the investments.
c. The IRS is assessing a taxpayer for an additional $ 100,000 of tax. The CPA offers to represent the taxpayer for a fee that is equal to 25 percent of any amount by which he can get the IRS to reduce its assessment.
d. A CPA places an advertisement in the local newspaper that states that she is the “Best CPA in the Western World.” The advertisement further states that, because of her great skill, the CPA has considerable influence with the IRS and the U. S. Tax Court. e. A CPA partnership has eight partners, six of whom are members of the AICPA. On its letterhead, the firm designates itself as “Members of the AICPA.”
f. A CPA who is not in public practice is convicted of helping to run a large illegal drug operation.
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Federal Tax Research

ISBN: 9781285439396

10th Edition

Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill

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