The Following Situations Involve a Possible Violation of the AICPA's

question 72

Essay

The following situations involve a possible violation of the AICPA's Code of Professional Conduct. For each situation, (1) determine the applicable rule from the Code, (2) decide whether or not the Code has been violated, and (3) briefly explain how the situation violates (or does not violate) the Code.
a. In 2014, Freeman and Johnson, both CPAs, decided to form a CPA practice. In 2016, Freeman and Johnson approached Bill Delaney, a physician and medical expert, and asked him to assist them with their growing medical consulting practice. Delaney agreed, but only after he was given an ownership interest in the firm. Delaney does not intend to quit his private medical practice.
Rule: ________ Violation?
Yes No

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.

Wage Opportunities

The availability and scope for individuals to earn income through employment or labor in the market.

U.S. Census Bureau

The U.S. Census Bureau is a principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy.

Illegal Immigrants

Individuals who enter or reside in a country without the necessary authorization or documentation required by immigration laws.