The following circumstances may involve violations of the Rules of Conduct: 1. A CPA bases his fee

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The following circumstances may involve violations of the Rules of Conduct:

1. A CPA bases his fee on the outcome of a bankruptcy proceeding.

2. A CPA discloses confidential information in a peer review of the firm's practice.
3. A CPA issues an unqualified opinion when a client departs from GAAP because of a conceptual disagreement with the FASB.
4. Henson, a CPA who is a resident of White Park, California is the stockholder and treasurer of the WPC Public Accounting Firm.
5. Benson seeks to enlarge his CPA practice by preparing a small brochure showing the relative advantages of his firm over other firms in the area.
6. Abel, CPA, represents himself as being especially skilled as an EDP audit specialist.
7. Reddy, CPA, is also an insurance broker.
8. A CPA examines the financial statements of a local bank and also serves on the bank's committee that approves loans.
9. Leon, CPA, pays a commission to an attorney to obtain a client.
10. Jenson, CPA, examines the financial statements of a local bank which holds a mortgage on his home.
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a. Indicate for each circumstance whether the effect on the Rule of Conduct is (1) a violation, (2) not a violation, or (3) indeterminate.

b. Identify the rule that is at issue in each case and the reason(s) for your answer.

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Modern Auditing

ISBN: 9780471542834

5th Edition

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

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