For each of the following situations, indicate whether or not the CPA may be violating the AICPA Code of Ethics. Explain why you think so using specific rules in the Code, whether or not there is a violation, so you must state it clearly. 

1- Pera, CPA, has extensive knowledge of tax law, and has realized that he knows many people who prepare their own tax returns. Therefore, it has proposed to them to review your returns and not charge you any fee for such review. However, he indicates to them that he is going to charge them a third of the total amount of savings that he identifies in the review of each return. 

2- Darden, CPA, and his associates already audit several municipalities. However, he proposes to contact other CPAs so that they can get him more municipalities as clients. In fact, he offers to pay them a commission as intermediaries of $ 500 (finder's fee) per client they get. 

3- The firm of Bell & Greer, CPAs, was hired by Trek Corporation, a private entity, to carry out the audit for the year ending December 31, 2019. Bell & Greer has two offices: one in Los Angeles, CA , and another in Newport Beach, CA. The Loa Angeles office will audit Trek Corporation. One of the partners in the Los Angeles office of Bell & Greer invested in the acquisition of a ranch in Montana jointly with one of the directors of Trek Corporation. The value of the investment is substantial to the personal capital of each of them. 

4- Bill Jones, an individual practicing CPA, made the audit worksheets of one of his clients available to another CPA for the latter to perform a peer review, but did so without your client's consent. 

5- John Adams, CPA, agreed and contracted to audit Kelly Company. During the audit he realized that he did not have the technical competence to carry it out. However, he concluded it and issued an unmodified opinion on the financial statements of Kelly Company.

 6- In the process of preparing his client's tax return, the CPA deducted an item at the client's request, even though he knows that it is not justified by the tax law.

Answer rating: 100% (QA)

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