P$2\mathrm{.}4($LO $4,5,6,7)$ An icon reads, Moderate. An icon reads, Research Rules of conduct In the practice of public accounting, an auditor who is a member of the AICPA is expected to comply with the rules of the AICPA Code of Professional Conduct. Listed below are circumstances that raise a question about an auditor$$s ethical conduct.

The auditor has a bank loan with a bank that is an audit client.

An unqualified opinion is expressed when the financial statements of a county are prepared in conformity with principles established by the Governmental Accounting Standards Board.

An auditor retains the client$$s records as a means of enforcing payment of an overdue audit fee.

The auditor makes retirement payments to individuals who formerly were members of the auditor$$s firm.

An auditor sells her shares of stock in a client company in April prior to beginning work on the audit for the year ending December $31.$

An auditor accepts an engagement knowing that he does not have the expertise to do the audit.

The auditor quotes a client an audit fee but also states that the actual fee will be contingent on the amount of work done.

The auditor$$s firm states in a newspaper advertisement that it has had fewer lawsuits than its principal competitors.

The auditor resigns her position as treasurer of the client on May $1,$ prior to beginning the audit for the year ending December $31.$

The auditor discloses confidential information about a client to a successor auditor.

The auditor accepts an audit engagement when he has a conflict of interest.

An auditor prepares a small brochure containing testimonials from existing clients that he mails to prospective clients.

An auditor complies with the technical standards of the Accounting and Review Services Committee in reviewing the financial statements of a non$-$public entity.

An auditor audits the financial statements of a local bank and also serves on the bank$$s committee that approves loans.

An auditor pays a commission to an attorney to obtain a client.