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

question 5

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,and you may use any letter more than once.
A.Rule 101: Independence; no violation
B.Rule 101: Independence; violation
C.Rule 301: Confidential Client Information; no violation
D.Rule 301: Confidential Client Information; violation
E.Rule 302: Contingent Fees; no violation
F.Rule 302: Contingent Fees; violation
____ 1.Jackson,CPA,and one of his audit clients are considering investing in a business together.Jackson would own 25 percent of the business and the client would own 50 percent.Jackson's investment in the business is material to his net worth.
____ 2.Feller,CPA,is the corporate controller for Robert Corporation.Feller believes his employer may have committed an illegal act.After discussing the matter with his attorney,Feller decides to disclose the matter to the appropriate authorities.
____ 3.Brock,CPA,is an owner in the firm Louis and Brock,CPAs.Brock's husband is on the board of directors of Midland Corporation,an audit client of Louis and Brock.Brock does not participate on the audit engagement.
____ 4.Ruth,CPA,owns a building and leases a portion of the space to an audit client.The income from the lease is not material to Ruth.
____ 5.Maris,CPA,performs investment advisory services for an audit client and receives an annual fee based on a percentage of the value of the client's investment portfolio at the end of each year.

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Definitions:

Bachelorhood

The life stage or condition of being a bachelor; a man who is single and not currently married, often implying eligibility for marriage.

Marital Relations

The dynamics and interactions between individuals in a marriage, including emotional, physical, and sexual connections.

Stability

The quality of being unchanging, dependable, or resistant to sudden change or deterioration.

Romantic Bliss

A state of perfect happiness and harmony in a romantic relationship.