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:

Cellular Composition

The unique arrangement and types of cells that make up an organism, defining its structure and function.

Themes in Biology

Fundamental concepts that recur throughout the study of life, such as evolution, structure and function, and energy transfer.

Organ

A specialized structure, such as the heart or liver, or a flower, made up of tissues and adapted to perform a specific function or group of functions.

Tissues

Groups of similar cells that perform specific functions within an organism; examples include muscular, nervous, epithelial, and connective tissues.