For each of the situations listed, identify which of three principles (integrity, objectivity and independence, or due care) from the AICPA Code of Professional Conduct is violated. Assume all persons listed in the situations are members of the AICPA. (Note: Refer to the AICPA Code of Professional Conduct contained on pages 25–27 in Chapter 1 for descriptions of the principles.)

a. Maureen’s company is switching to FIFO, after using the LIFO method for several years. Maureen does not remember how to apply the FIFO method, but is too busy to review the technique. She figures the auditors will catch anything she does wrong.

b. Elyse is an auditor at a public accounting firm. She is auditing one of her firm’s largest clients. Her aunt is the CEO of this client. Elyse does not mention the relationship to her manager.

c. A fire at Steve’s company has destroyed most of the accounting records and a significant amount of inventory. He finds some partial records he can use to estimate the amount of inventory the company had on hand using the gross profit method. He knows that the quantity on hand was much lower than what he claims on the insurance form he submits, but rationalizes that his company has paid insurance premiums for many years.

d. Wei is the chief accountant for a furniture manufacturer. Two years ago, Wei changed the company’s inventory method to FIFO. This year, Wei is changing back to LIFO. The motivation for the changes is solely to manipulate net income.