For each case, select whether the action or situation shows a violation of the AICPA Code of Professional Conduct, and select the relevant rule.

Relevant Rules:

Accounting Principles Rule

Acts Discredible Rule

Advertising and Other Forms of Solicitation Rule

Compliance with Standards Rule

Confidential Client Information Rule

Fees and Other Types of Remuneration Rule

Form of Organization and Name Rule

General Standards Rule

Independence Rule

Integrity and Objectivity Rule

	Case	Violation? (Yes/No)	Relevant Rule
A	CPA Sal Colt has discovered a way to eliminate most of the boring work of processing routine accounts receivable confirmations by contracting with the Cohen Mail Service. After the auditor has prepared the confirmations, Cohen stuffs them in envelopes, mails them, receives the return replies, opens the replies, and returns them to Colt.	NO	Confidential Client Information Rule
B	Cadentoe Corporation, without consulting Jora Cramer, its CPA, has changed its accounting so that it is not in conformity with GAAP. During the regular audit engagement, Cramer discovers that the statements based on the accounts are so grossly misleading that they might be considered fraudulent. Cramer resigns the engagement after a heated argument. Cramer knows that the statements will be given to Sandy Panzer, a friend at the Last National Bank, and that Panzer is not a very astute reader of the complicated financial statements. Two days later, Panzer calls Cramer and asks some general questions about Cadentoes statements and remarks favorably on the very thing that is misrepresented. Cramer corrects the erroneous analysis and Panzer is very much surprised.	YES	Confidential Client Information Rule
C	A CPA who had reached retirement age arranged to sell the practice to another certified public accountant. Their agreement called for the review of all audit documentation and business correspondence by the accountant purchasing the practice.	NO	Confidential Client Information Rule
D	Martha Jacoby, CPA, withdrew from the audit of Harvard Company after discovering irregularities in Harvards income tax returns. One week later, Jacoby received a phone call from Jake Henry, CPA, who explained that he had just been retained by Harvard Company to replace her. Henry asked Jacoby why she withdrew from the Harvard engagement, and she told him.	NO	Confidential Client Information Rule
E	CPA Chen Wallace has two audit clients: Willingham Corporation owned by Jayden Willingham, and Ward Corporation owned by Bailey Ward. Willingham Corp. sells a large proportion of its products to Ward Corp., which amounts to 60 percent of Ward Corp.s purchases in most years. Willingham and Ward are also Wallaces tax clients as individuals. This year, while preparing Wards tax return, Wallace discovered information that suggested Ward Corporation is in a failing financial position. In consideration of the fact that the companies and individuals are mutual clients, Wallace discussed Ward Corporations financial difficulties with Willingham.	YES	Confidential Client Information Rule
F	Ashley Fiddle, CPA, prepared an uncontested claim for a tax refund on Faddle Corporations amended tax return. The fee for the service was 30 percent of the amount the IRS rules to be a proper refund. The claim was for $300,000.	YES	Fees and Other Types of Remuneration Rule
G	After Faddle had won a $200,000 refund and Fiddle collected the $60,000 fee, Jordan Faddle, the president, invited Fiddle to be the auditor for Faddle Corporation.	YES	Fees and Other Types of Remuneration Rule
H	Burgess Company engaged CPA Kim Philby to audit Maclean Corporation in connection with a possible initial public offering (IPO) of stock registered with the SEC. Burgess Company established a holding company named Cairncross Inc. and asked Philby to issue an engagement letter addressed to Cairncross stating that Cairncross would receive the auditors report. Cairncross has no assets, and Philby agreed to charge a fee for the audit of Maclean only if the IPO is successful.	YES