Which One of the Following Situations Is a Violation of the Professional

question 53

Multiple Choice

Which one of the following situations is a violation of the professional rules of conduct? PA

• A)looked the other way when he noticed that one of his firm's accounting staff accepted money from client management.
• B)resigned so that he could accept a position on the Board of Directors at a major client.
• C)prepared personal and corporate tax returns for a client and all of its executive officers.
• D)placed an advertisement in the local paper indicating that she conducted audit engagements for five major insurance companies.

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Definitions:

Duty of Care

Duty of care is a legal obligation imposed on individuals to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.

Negligence Action

A legal suit filed by an individual claiming harm due to another party's failure to exercise an appropriate level of care.

Forfeiture Rule

The principle that a criminal should not be permitted to profit from a crime.

Criminal's Estate

The assets and properties owned by a criminal, which may be subject to legal action or forfeiture in the event of legal proceedings against the individual.