Question

Provided is a list of actions or situations that show a violation of the AICPA Code of Professional Conduct. For each case, select the relevant rule that is being violated. Relevant Rule a. CPA Ellen Stout performs the audit of the local symphony society. Because of her good work, she was elected an honorary member of the board of directors. Independence Rule CPA Darcy Wolfe practices management consulting in the area of computerized information systems under the firm name of Wolfe & Associates. The "associates are not CPAs, and the firm is not an accounting firm. However, Wolfe shows CPA on business cards and uses these credentials when Advertising and other forms of dealing with clients. Solicitation Rule CPA Alex Goodwin performs significant day-to-day bookkeeping services for Harper Corporation and Compliance with Standards Rule c. supervises the work of the one part-time bookkeeper employed by Had- ley Harper. This year, Harper wants to engage CPA Goodwin to perform an audit. Form of Organization and Name Rule CPA H. Poirot bought a home in 1989 and financed it with a mortgage loan from Far-raway Savings General Standards Rule d. and Loan. Farraway was merged into Nearby S&L, and Poirot became the manager in charge of the Nearby audit Independence Rule Poirot inherited a large sum of money from old Mr. Giraud in 2000. Poirot sold his house, paid off the loan to Nearby S&L, and purchased a much larger estate. Nearby S&L provided the financing. Poirot and Mala Lemon (a local real estate broker) formed a partnership to develop apart-ment buildings. Lemon is a 20 percent owner and managing partner. Poirot and three partners in the f. accounting firm are limited partners. They own the remaining 80 percent of the partnership but have no voice in everyday management. Lemon obtained permanent real estate financing from Nearby S&L. Lemon won the lottery and purchased part of the limited partners' interests. She now owns 90 percent g. of the partnership and remains general partner while the CPAs remain limited partners with 10 percent interest CPA Justin Shultz purchased a variable annuity insurance contract that offered the option to choose h. the companies in which this contract will invest. As directed, the insurance company purchased common stock in one of Shultz's audit clients.

Answer 1

Answer:

a. Independance rule

b. Form the orginazation and name Rule.

c. Independance Rule.

d. Independance Rule

e. General Standards Rule.

f. Compliance with standareds rule.

g. Independence Rule.

h. Advertising and other forms of soliciation Rule.