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. Shontelle’s company, Hollow Technologies, recently decided to repurchase stock from its shareholders. Shontelle is in charge of booking the entries for this new treasury stock. However, she does not know how to record treasury stock transactions, so she just deducts the amount repurchased from Common Stock.

b. Haylee is a senior auditor for Leonarda & Calloway and has worked on its client, Blue Iron, Inc., for the past few years. A few months ago, Blue Iron, Inc., offered Haylee a position in its internal audit department. Haylee accepted the position and works very closely with the external auditors. In fact, she often prepares the work papers for the external auditor since she knows the systems better than the new auditors.

c. Andrew is a senior manager at Ford & Hill, a regional public accounting firm. Ford & Hill recently obtained a new client, Vista, Inc. Andrew’s sister is the CEO of Vista, a fact that he did not disclose to the board.

d. Connor is the CFO for Tree Street Coffee Corporation and is going to take the company public within the next six months. In an effort to make the stock look more appealing and therefore sell at a higher price, Connor overrides the system controls and records fictitious sales entries.