For Each of the Following Cases Indicate If the Action

question 45

Essay

For each of the following cases indicate if the action by a member CPA is a violation of the AICPA Code of Professional Conduct and cite the relevant rule.
A. Disclosed client information to another CPA firm during the discussion of a merger of the two firms.
B. Allow a company to change the way it values inventory to a method that is not GAAP because following GAAP would be misleading.
C. Had a new car loan from a bank that is a client when the bank holds the title to the car.
D. Based fee on approval of a bank loan dependent upon audited financial statements.
E. Did not comply with "Government Auditing Standards on a government audit."

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Definitions:

Emotion Influence

The impact emotions have on cognitive processes and behaviors, including decision-making, creativity, and interpersonal relationships.

Need for Achievement

The motivation to reach a significantly challenging goal, overcome obstacles, and exert a high standard of success in one's endeavors.

McClelland

Refers to David McClelland, a psychologist known for his work on motivation, notably the theory of Needs which includes the need for achievement, power, and affiliation.

Homeostasis

The process by which a living organism or cell maintains stable conditions necessary for its survival, such as temperature and pH balance.