Identify the Ethical issue that should be taken for each of the following independent cases, and explain the appropriate response to be taken by the CPA:

You are expected to make appropriate:

assumptions, explanations & Justifications.

1. APC CPA firm was hired by ABC Co. to determine whether it would make financial sense to file a major antitrust lawsuit against one of its competitors, DBO Co. DBO is an audit client of APC.
2. APC CPA firm was hired by CBA Co. to help it determine whether it should acquire XYZ Co. As APC consultants analysed the situation, they realized that XYZ was an even better fit for one of its long-standing consulting clients, CLN Co. APC was collecting consulting fees from both CBA and CLN in their pursuit of XYZ.
3. APC CPA firm has been approached by LMN Co. to do tax services on a contingent fee basis.