For Each Situation (1-5),identify the Most Applicable AICPA Rule of Conduct

question 56

Short Answer

For each situation (1-5),identify the most applicable AICPA rule of conduct and indicate whether there is a violation or no violation of the rule (A-F).One or more letters may not be used.
A.Rule 101: Independence; no violation
B.Rule 101: Independence; violation
C.Rule 102: Integrity and Objectivity; no violation
D.Rule 102: Integrity and Objectivity; violation
E.Rule 203: Accounting Principles; no violation
F.Rule 203: Accounting Principles; violation
____ 1.Sterling Stevens,CPA,was auditing Global Services Company.Global Services used an accounting principle that was not in conformity with GAAP.Nevertheless,Stevens rendered a standard unqualified audit report.
____ 2.Christina Hall,CPA,provided expert testimony for a plaintiff.The defendant in the case was a client of Hall's.
____ 3.Sam Miller,CPA,owned 100 shares of Johnson Drilling,Inc.,his audit client.
____ 4.Dewey Wise,CPA,obtained a loan from an insurance company using the cash value of the insurance policy as collateral.The loan is for less money than the cash value of the policy.
____ 5.Stella Steinbeck,CPA,was auditing Good Services Company,which used an accounting principle that was not in conformity with GAAP.Good Services believed and Steinbeck concurred that using a generally accepted method would cause the financial statements to be misleading.Therefore,Steinbeck rendered a standard unqualified audit report.

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Definitions:

Groupthink

A psychological phenomenon occurring in a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Devil's Advocacy

A critical analysis technique involving taking a position one does not necessarily agree with, for the purpose of debate or to explore the validity of a viewpoint.

Acculturation

The process of adopting the cultural traits or social patterns of another group.

I-based Statements

Personal statements that start with or primarily use the pronoun "I" to express the sender's thoughts, feelings, or actions.