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

question 142

Essay

Each of the following situations involves a possible violation of the rule on independence. For each situation, (1) decide whether the Code of Professional Conduct has been violated, and (2) briefly explain how the situation violates (or does not violate) the Code of Professional Conduct.
a. Harry Brown is a partner in the Topeka office of Hedley & Co., CPAs. Harry's brother is employed in an audit-sensitive position by Jensen Appliances, a publicly held company in Kansas. Jensen Appliances is one of Hedley & Co.'s audit clients. Neither Harry nor personnel from the Topeka office is involved in the audit of Jensen.
Violation?
Yes No

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Definitions:

Economic

Economic refers to anything related to the production, distribution, and consumption of goods and services, and how they affect the wealth of a society or an individual.

Traditional Nuclear Family

A family structure typically consisting of two parents (one male, one female) and their biological children living together.

Latchkey Family

A family arrangement where children are left to care for themselves for part of the day, often because parents are at work or away.

Employed Full-Time

Refers to having a job or position that requires the standard number of hours per week defined by an employer as full-time work.