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Question 2 An auditor who is a member of the IAPI (Intitut Akuntan Publik Indonesia) is expected to comply with the rules of the IAPI Code of Professional Conduct. Listed below are circumstances that raise a question about an auditor's ethical conduct. 1. The auditor has a bank loan with a bank that is an audit client. 2. An auditor retains the client's records as a means of enforcing payment of an overdue audit fee. 3. The auditor makes retirement payments to individuals who formerly were members of his firm, 4. An auditor accepts an engagement knowing that he does not have the expertise to do the audit. 5. The auditor quotes a client an audit fee but also states that the actual fee will be contingent on the amount of work done. 6. The auditor's firm states in a newspaper advertisement that it has had fewer lawsuits than its principal competitors. 7. The auditor discloses confidential information about a client to a successor auditor. 8. The auditor accepts an audit engagement when he has a conflict of interest. 9. An auditor audits the financial statements of a local bank and also serves on the bank's committee that approves loans. 10. An auditor pays a commission to an attorney to obtain a client Required a) Identify the rule of the IAPI Code of Professional Conduct that applies to each circumstance b) Indicate for each circumstance whether the effect on the rule is (1) a violation, (2) not a violation, or indeterminate. Give the reason(s) for your answer. Question 2 An auditor who is a member of the IAPI (Intitut Akuntan Publik Indonesia) is expected to comply with the rules of the IAPI Code of Professional Conduct. Listed below are circumstances that raise a question about an auditor's ethical conduct. 1. The auditor has a bank loan with a bank that is an audit client. 2. An auditor retains the client's records as a means of enforcing payment of an overdue audit fee. 3. The auditor makes retirement payments to individuals who formerly were members of his firm, 4. An auditor accepts an engagement knowing that he does not have the expertise to do the audit. 5. The auditor quotes a client an audit fee but also states that the actual fee will be contingent on the amount of work done. 6. The auditor's firm states in a newspaper advertisement that it has had fewer lawsuits than its principal competitors. 7. The auditor discloses confidential information about a client to a successor auditor. 8. The auditor accepts an audit engagement when he has a conflict of interest. 9. An auditor audits the financial statements of a local bank and also serves on the bank's committee that approves loans. 10. An auditor pays a commission to an attorney to obtain a client Required a) Identify the rule of the IAPI Code of Professional Conduct that applies to each circumstance b) Indicate for each circumstance whether the effect on the rule is (1) a violation, (2) not a violation, or indeterminate. Give the reason(s) for your