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Question 34 State if the scenario given below is a violation of any part of the professional code of ethics for Auditors or not. Scenario The accounting firm of Essam & Meustafa, CPAs, provides bookkeeping and tax services for Henderson & Brothers, a family-owned company. Mr. Moustafa also performs the annual audit of Henderson. Which of the following applies correctly? B) Essam & Meustafa audit firm is violating Integrity and Objectivity rules C) Essam & Meustafa audit firm is violating Commissions and Referral Fees rules A) Essam & Meustafa audit firm is violating Independence rules D) Essam & Meustafa audit firm is Not in violation of the code at all Question 35 State if the scenario given below is a violation of any part of the professional code of ethics for Auditors or not. Scenario The accounting firm of Smith & Black, CPAs, is negotiating a fee with a new audit client where the client will pay $50,000 if the client obtains the line of credit (loan) needed for working capital purposes. Otherwise, the fee will be $40,000. Which of the following applies correctly? A) the firm is violating rules of Independence D) the firm is not violating any of the rules C) the firm is violating rules of Commissions and Referral Fees B) the firm is violating rules of Contingent Fees Question 36 State if the scenario given below is a violation of any part of the professional code of ethics for Auditors or not. Scenario Elaine Cooper, CPA, is the auditor of Paula's Pizza. Toward the end of the audit, Paula gave Elaine her estimate of receivable collectability and Elaine accepted it without any testing. Which of the following applies correctly? C) Elaine Cooper audit firm is violating Commissions and Referral Fees rules D) Elaine Cooper audit firm is Not in violation of the code at all B) Elaine Cooper audit firm is violating Integrity and Objectivity rules A) Elaine Cooper audit firm is violating Independence rules