Provide the AICPA standard code down to the specific paragraph. (AU-C, AR-C, AT-C, ET)

1. During the year-end audit of Busby Mfg., your firm noted significant purchases from a related party of Busby. Management has declined to disclose the related-party transactions in the footnotes. This is the only item that the auditor wishes to consider for the report on financial statements. Find the relevant sample reporting language in the AICPA Professional Standards that is applicable to such an instance of (material) inadequate disclosure.

2. Assume that you are a CPA in public practice and a client has offered you a gift that is not significant in value. Can you ever accept a gift from a client? Provide the specific code reference that addresses how to resolve the issue.

3. Assume that you are a sole practitioner who provides primarily tax and compilation services. A married couple, John and Susie, have been your tax clients for several years. However, they are going through a divorce. They both want you to continue providing tax planning services while the divorce is proceeding. Is there a conflict of interest if you continue to provide tax services for both John and Susie? Provide the specific reference relevant to this situation.

4. Assume that your CPA firm is considering advertising to increase its client base and would like to promote itself as being able to generate the lowest tax liability and/or highest return in the region. Provide the specific code reference that answers whether this approach complies with the code of ethics.