Following is a list of potential viola- tions of the AICPA's Code of Professional Conduct.

Auditor Situations:

1. T.O. Busy is unable to perform a service requested by a client. Therefore, Busy refers the client to Able, who pays Busy $200 for referring the business. Nei- ther Busy nor Able tells the client about the referral fee.

2. M.R. Big's wife owns 100 shares of common stock in an audit client of Big's CPA firm, in which he is a partner.

3. I.M. Aggressive personally visits potential clients without invitation for the purpose of obtaining business from them.

4. C.P. Lawyer, a CPA sole practitioner, serves as legal counsel to his audit client.

5. A public accounting firm places a full-page, four-color advertisement in Busi- ness Week that describes some of the services it provides.

                                                                                                                                   

Required 

For each of the preceding situations, indicate:

a. Whether the CPA is in violation of the AICPA's code

b. The specific rule or principle that is violated