For the following situation, state whether the CPA has violated the CHARTERED PROFESSIONAL ACCOUNTANTS OF ONTARIO Professional Rules of Conduct and/or Independence Standard, and explain your reasoning.

1. Irene, CPA, provides various services for Simply Fashion Inc., a privately held company. She completes all of Simply Fashion Inc.’s tax work, including preparing the annual corporate tax filing and performing tax consulting services. Recently Simply Fashion Inc. began negotiations for a new bank loan, and a condition of the loan is that Simply Fashion must provide the bank with audited financial statements on an annual basis. Simply Fashion has asked Irene to complete the annual audit and to continue to perform the tax services she already performs. Irene accepted the engagement, and in order to improve audit efficiency, she has assigned the team that completes the tax work to the financial statement audit.

Answer rating: 100% (QA)

Irene has violated the CHARTERED PROFESSIONAL ACCOUNTANTS OF ONTARIO Professional Rul... View the full answer