Answer each question in 3 sentences or more.

EXERCISING YOUR ETHICS: INDIVIDUAL EXERCISE GIVE AND TAKE WITH ACCOUNTING CLIENTS The Situation CPAs rely on access to private information from clients for preparing financial documents. As professionals, accountants also charge fees for their services. Occasionally, however, the obligations of both parties become blurred when disputes arise, causing strained client-CPA relationships The Dilemma Aaron Ault delivered original expense and income records so that his CPA, Katrina Belinski, could prepare financial statements for Ault's small business firm. Three months later, Katrina delivered the completed financial statements together with a fee for services to Ault. Aaron was surprised at what he regarded as excessive fees in the accountant's invoice and refused to make payment. Katrina, in turn, refused Ault's request for return of his original documents until such time as Ault paid for services rendered Unable to retrieve his documents, Ault filed a complaint with the Professional Ethics Executive Committee of the AICPA. The charge was violation of Rule 501-Acts Discreditable. Upon hearing the case, a settlement agreement was reached between the AICPA and the accountant. Its stipulations included the flowing: (l) A two-year suspension from membership in the AICPA and (2) the accused must complete the AICPA course entitled Professional Ethics, with a passing grade of 90 or above. UESTIONS TO ADDRESS 1 What are the ethical issues in this situation? 2. Do you agree with the way the CPA (Katrina) handled the situation? 3. What would you do differently next time (a) as the client, and (b) as the CPA