$1.$

When audit firms create a network with other firms to share certain$$ characteristics, such as the sharing of audit methodologies and audit$$ manuals, interpretations of the Code require each network firm to be independent of audit and review clients of other network firms. The ownership by a firm who are partners in one of the network firms in the stock of a client of another network firm would impair independence.

$2.$

When audit firms create a network with other firms to share certain$$ characteristics, such as the sharing of audit methodologies and audit$$ manuals, interpretations of the Code require each network firm to be independent of audit and review clients of other network firms. The ownership by a firm who are partners in one of the network firms in the stock of a client of another network firm would impair objectivity and client confidentiality.

$3.$

An interpretation of the Code prohibits the inclusion of indemnification clauses and other limitations of liability provisions in engagement letters for audit and other attest services.

$4.$

An investment by a client in a firm that is also an investment of a related party to the CPA firm constitutes a violation of independence according to interpretations of the

Code.

$5.$

An interpretation of the code states that no member of$$ top$-$level$-$management can be a former employee of the auditing firm.

$6.$

Interpretations and rulings note that independence is impaired if billed or unbilled fees remain unpaid for professional services provided more than six months before the date of the$$ auditor's report.

$7.$

Interpretations and rulings note that independence is impaired if billed or unbilled fees remain unpaid for professional services provided more than one year before the date of the$$ auditor's report.

$8.$

Only new and$$ pre$-$existing mortgage loans provided by a new audit client that is a bank are permissible.

$9.$

Only$$ pre$-$existing mortgages provided by a new audit client that is a bank are permissible. No new mortgage loans are$$ permitted, however.

$10.$

Being offered a job from a client constitutes a discreditable act.

$11.$

The Code prohibits the solicitation and disclosure of the Uniform CPA examination questions and answers without permission of the AICPA.

$12.$

Two rules are violated whereby an individual knowingly included false and misleading transactions in the financial statements that were provided to the bank.

$13.$

Setting a fee based on financial results is in violation of multiple rules of the

Code.

$14.$

Providing financial information systems design and implementation services to a$$ publicly$-$traded client is prohibited under independence rules.