For Each of the Following Cases Indicate If the Action

question 77

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. Allowed 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 a fee on approval of a bank loan dependent on audited financial statements
E. Did not comply with Government Auditing Standards on a government audit

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Definitions:

Kinsey

Referring to Alfred Kinsey, an American biologist known for his research on human sexuality in the mid-20th century.

Interviewer

A person who asks questions in a formal or informal setting to gather information, often for a job position or research purposes.

Bulimia

A disorder involving episodes of overeating followed by actions to eliminate calories to avoid gaining weight.

Self-Starvation

An extreme form of dietary restriction, often associated with eating disorders such as anorexia nervosa, where individuals deny themselves sufficient nutrients for psychological reasons.