Wally Wide Is the Partner on the Audit Engagement for First

question 27

Essay

Wally Wide is the partner on the audit engagement for First National Bank.Wally was recently promoted to partner.Based on his increase in income,Wally and his family bought a larger home and a new car.First National Bank had the most competitive mortgage rate and auto loan rates so Wally obtained both his mortgage loan and car loan from First National.Wally paid 20% down on the house,received no special rate of interest,and the First National Bank holds the title to the house.Wally traded in his old car and made and additional down payment on the car and financed 60% of the price of the car with the bank.Again,Wally paid the prevailing interest rate and the bank holds the title to the car.
Required: The situations above involve possible violations of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number,but should clearly describe the rule in question.

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Definitions:

State Constitution

The fundamental legal document that outlines the structure, functions, and principles of government at the state level in the United States.

Title VII

Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employers from discriminating against employees on the basis of sex, race, color, national origin, and religion.

Gender-Based Assignments

Tasks or roles assigned based on gender, often criticized when they perpetuate stereotypes or limit opportunities based on gender.

Civil Rights Act

Landmark legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin, primarily focused on ending unequal application of voter registration requirements and racial segregation.