1. Did Ed commit an act discreditable to the profession? Explain.

2. Does the case have any bearing on Ed's ability to provide competent services to his client and serve the public interest? Why or why not?

3. What should Ed’s attorney say in defense of his client?

4. Should state board of accountancy rules regulate personal behavior not related to one’s professional services?

Ed has a growing CPA practice. He worked in New York after graduation, but has since returned home to Orlando to be closer to his family. Ed has been married to Kristina, the girl of his dreams, for five years and they have two children.
Ed is catching up on work after the family vacation to Walt Disney World. Just a quick call to his wife and then off to see his client Ella at Spa Day. Ella is his wife’s long-time friend and has become a big client of Ed’s firm for both consulting and tax services. Ella has expanded to three locations in Orlando and is considering a new location in Tampa.
Ed arrives early for the meeting. Ella comes out and greets him.
Ella:    Ed, you look rested. I hope your family enjoyed the Disney vacation. [Ed nodded his head]. I am expecting a call from the leasing agent for the Tampa location. I need to delay our meeting about 30 minutes. While you wait, you can enjoy a shoulder massage by Carrie, courtesy of the spa.
Ed:    That sounds nice. Kristina will be jealous that I am getting a massage. I could use some relaxation after three days on rides and trekking through the park. But, if today’s inconvenient for you I can come back another day.
Ella:    No, no. I must move quickly on the new location and need to consult with you on some tax questions.
Ed:    Okay, but I need to make the soccer game at 4:30. This is the first time the girls are facing each other in a game. Frankly, I don’t know who to root for. Kristina said she’ll root for one and I’ll root for the other.
Ella:    Very diplomatic. I like it. Anyway, I’ll be done in 30 minutes and we’ll have plenty of time to talk before you go to the game.
   
Carrie came out and led Ed to the massage room. As Ed is enjoying the massage, a commotion is heard in the hallway. All of a sudden, another masseuse comes in and screams, “Police!” Next thing Ed knows, the door is slammed open and a policeman and police woman shout: “You’re all under arrest!” Ed is startled. He begins to talk with trepidation.
Ed:    What for? I am a CPA here for a meeting with my client, Ella.
Police:    This location is a front for prostitution and money laundering. All customers will be taken to the station and charged with criminal mischief.
At the station, there was total chaos. The customers and the employees were milling around, not knowing what to do. Ella was nowhere to be seen. After a phone call to his wife and attorney, Ed is told that he will be booked, arraigned and the released on his own recognizance.
By the time the dust settled, Ed missed the game. His wife came to pick him up. The girls were in tears.