Each of the Following Situations Involves a Possible Violation of the Provincial

question 24

Essay

Each of the following situations involves a possible violation of the provincial institutes Rules of Professional Conduct. For each situation, (1) decide whether or not the Rules have been violated, and (2) briefly explain how the situation violates (or does not violate) the Rules.
A) Johnny Line has a successful dentistry practice in Calgary. Johnny has recommended one of his patients to Leslie King, public accountant. To show gratitude for the referral, Leslie has agreed to pay Johnny 5% of the fee for audit services rendered by Leslie to Johnny's patient. Leslie discloses the payment agreement to her new client.
Violation? Yes No

• A) Johnny Line has a successful dentistry practice in Calgary. Johnny has recommended one of his patients to Leslie King, public accountant. To show gratitude for the referral, Leslie has agreed to pay Johnny 5% of the fee for audit services rendered by Leslie to Johnny's patient. Leslie discloses the payment agreement to her new client.
• Violation? Yes No

---

Definitions:

Dishonored Note

A promissory note that has not been paid by the maker at the maturity date.

360-Day Year

An accounting convention that simplifies interest calculations by assuming each month has 30 days, totaling 360 days for the year.

Interest Calculation

The process of determining the charge for the use of borrowed funds or the return on invested funds, typically expressed as an annual percentage rate.

Accrued Interest

Interest that has been incurred but not yet paid or received.