Describe how each situation might impair your independence from the auto dealership.According to the AICPA conceptual framework if a accepting of gift will amount to bribery and is unethical if you are not a partner and employee of the company .Step-by-step explanation

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1. Describe how each situation might impair your independence from the auto dealership. According to the AICPA conceptual framework if a accepting of gift will amount to bribery and is unethical if you are not a partner and employee of the company. In all the situations its seems the auto dealership is proving gift in terms of monetary value The independence has or not be impaired for all 3 situations are provided below there is no separation of responsibility, not applicable and there is lack of independence There is potential threat to independence and lack of independence 3 There is lack of independence b. Identify a safeguard that your CPA firm could impose that would eliminate or mitigate the threat of each situation to your independence. The CPA firm in which I am working could do the following To have a internal policy statement which disallows its partners and employees and associated not to entertain any gifts or discounts from its clients The policy statements can be circulate to all its clients so that the above mentioned situations does not arise If the above mentioned situation arises it better to inform the firm and decline the offers from auto dealership politely C. Assume no safeguards are in place and that you accept the or gift in each situation. Discuss whether or not you violated the rules of conduct. The rules of conduct violated or not in each situation is given below In this case if accepted there will be lack of independence In this case no rules will be violated but is advisable to eat outside 3 In this case they will be lack of independence and shows lack of integrity and objectivity 1. Describe how each situation might impair your independence from the auto dealership. According to the AICPA conceptual framework if a accepting of gift will amount to bribery and is unethical if you are not a partner and employee of the company. In all the situations its seems the auto dealership is proving gift in terms of monetary value The independence has or not be impaired for all 3 situations are provided below there is no separation of responsibility, not applicable and there is lack of independence There is potential threat to independence and lack of independence 3 There is lack of independence b. Identify a safeguard that your CPA firm could impose that would eliminate or mitigate the threat of each situation to your independence. The CPA firm in which I am working could do the following To have a internal policy statement which disallows its partners and employees and associated not to entertain any gifts or discounts from its clients The policy statements can be circulate to all its clients so that the above mentioned situations does not arise If the above mentioned situation arises it better to inform the firm and decline the offers from auto dealership politely C. Assume no safeguards are in place and that you accept the or gift in each situation. Discuss whether or not you violated the rules of conduct. The rules of conduct violated or not in each situation is given below In this case if accepted there will be lack of independence In this case no rules will be violated but is advisable to eat outside 3 In this case they will be lack of independence and shows lack of integrity and objectivity

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