For Each of the Following Actions by a Member CPA

question 70

Essay

For each of the following actions by a member CPA, indicate (1) the rule of conduct that is applicable and (2) whether the actions does (yes) or does not (no) violate the rule. You may identify the rule by number on your answer sheet. Your selections can be made from the following list: 1.Discriminates in employment.
2.Makes recommendations but not the decisions in an MCS engagement for a nonpublic client.
3.Permits a non-CPA to be the chairman of the board of a CPA firm organized as a professional corporation.
4.Fails to make inquiries in a review of interim financial information.
5.Accepts a commission from a vendor, with the permission of the audit client, for
recommending the vendor's product.
6.Indicates that he will perform the audit of a city's united fund charity for a nominal fee.
7.Transfers working papers, with the client's permission, to the client's new auditors.
8.Subordinates his judgment in favor of the client in tax practice when there is little support for the client's position.
9.Indicates the number of partners, CPAs and offices in his or her firm in an advertisement.
10.States that the fee in a tax case will be based on the amount of tax saving realized.
11.Fails to conform to a recently issued SAS, which has an immaterial effect on the financial statements.
12.A personnel manager in the office doing the audit of a client has a financial interest in the client.
13.Fails to adequately plan and supervise an MCS engagement.
14.Agrees to serve as an honorary director of a charitable foundation.
15.Knowingly misrepresents facts in an engagement.

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Definitions:

Whistleblower

An individual who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Modern-Day Terminology

Contemporary language that includes words and phrases currently in use.

Permanent Spanish Colony

A territory in the Americas, Africa, Asia, or Oceania that was settled and governed by Spain as a part of its empire indefinitely or until independence.

St. Augustine, Florida

A city in Northeast Florida and one of the oldest continuously inhabited European-established settlements in the continental United States, founded in 1565 by Spanish explorers.