Below are the names of four CPA firms and pertinent related facts. Unless otherwise stated, the individuals named are CPAs and partners. Which firm name and related facts indicate a violation of the AICPA Code of Professional Conduct? O Schneider & Co., CPAs, Inc. (The firm has ten other stockholders who are all CPAs). O Fulton and Jackson, CPAS (Jackson died about five years ago; Fulton is continuing the firm as a sole proprietorship). O Clay and Sharp, CPAS (The name of Andy Randolph, CPA, the only other partner, is omitted from the firm name). Green, Lawrence, and Craig, CPAS (Craig died about two years ago; Green, Lawrence and two other partners are continuing the firm)
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- In the following case, identify all the violations of the rules of conduct of the Code of Professional Ethics, indicate the rule and explain why it was violated. Carmen and Carlos formed a corporation called CPA al servicio. 50% of all issued shares are divided between the two owner shareholders. Carmen in CPA and member of the AICPA Carlos is an appraiser. They announce themselves as members of the AICPA. They were hired to do an audit, the payment of which will be based on the findings of the CPA. Carmen commented with another CPA colleague on important aspects of the case to be audited. During the audit Carmen found deviations from the Generally Accepted Accounting Principles. Carmen gave an opinion in the report of her "unqualified without qualification."102 Integrity and objectivity } 201 General standards } 202 Compliance with standards } 203 Accounting Principles } 301 Confidential customer information } 302 Contingency expenses } 501 Acts of discredit } 502 Promotion or…A client of the CPA firm of Harston and Mendez is a medical practice of seven local doctors. One doctor has been sued for several million dollars as the result of a recent operation. Because of what appears to be this doctor’s very poor judgment, a patient died. Although that doctor was solely involved with the patient in question, the lawsuit names the entire practice as a defendant. Originally, four of these doctors formed this business as a general partnership. However, five years ago, the partners converted the business to a limited liability partnership based on the laws of the state in which they operate. Read the following articles as well as any other published information that is available on partner and partnership liability: “Partners Forever? Within Andersen, Personal Liability May Bring Ruin,” The Wall Street Journal, April 2, 2002, p. C1. “Collapse: Speed of Andersen’s Demise Amazing,” Milwaukee Journal Sentinel, June 16, 2002, p. D1. Required Based on…A client of the CPA firm of Harston and Mendez is a medical practice of seven local doctors. One doctor has been sued for several million dollars as the result of a recent operation. Because of what appears to be this doctor's very poor judgment, a patient died. Although that doctor was solely involved with the patient in question, the lawsuit names the entire practice as a defendant. Originally, four of these doctors formed this business as a general partnership. However, five years ago, the partners converted the business to a limited liability partnership based on the laws of the state in which they operate. Read the following articles as well as any other published information that is available on partner and partnership liability: "Collapse: Speed of Andersen's Demise Amazing," Milwaukee Journal Sentinel, June 16, 2002. P. D1. "Partners Forever? Within Andersen, Personal Liability May Bring Ruin," The Wall Street Journal, April 2, 2002, p. Cl. Required Based on the facts…
- Kimball, a partner in a one-office firm, inherits 15 shares of Spotless Housekeeping Services stock. The stock has a market value of $25 per share; there is a ready market for them; and there are 300,000 shares outstanding. Spotless is an audit client of the firm, and Kimball does no work or consulting for Spotless engagements. Which of the following is CORRECT regarding Kimball receiving this stock and maintaining the firm's independence with Spotless? As long as Kimball does not work on the engagements for Spotless, nothing need be done. If he works on the engagements for Spotless, then the shares must be promptly sold to preserve the firm's independence. Since the shares are worth only $375 and they were inherited, nothing need be done. If Kimball transfers the shares to a blind trust where he is the beneficiary, independence with Spotless will not be impaired. The shares must be sold within 30 days of their receipt.Dale Fullerton was chairman of the board of Envirosearch and the sole stockholder in Westover Hills Management. James Anderson was president of AGFC. Fullerton and Anderson agreed to form a limited partnership to purchase certain property from WYORCO, a joint venture of which Fullerton was a member. The parties intended to form a limited partnership with Westover Hills Management as the sole general partner and AGFC and Envirosearch as limited partners. The certificate filed with the Wyoming Secretary of State, however, listed all three companies as both general and limited partners of Westover Hills Ltd. Anderson and Fullerton later became aware of this error and filed an amended certificate of limited partnership, which correctly named Envirosearch and AGFC as limited partners only. Subsequently Westover Hills Ltd. became insolvent. What is the liability of Envirosearch and AGFC to creditors of the limited partnership?Watson Diggs and Paul Caine form Diamond Group LLC. Watson invests $1,000 into the Diamond Group and Paul invests $500. One of the Diamond Group’s vans was in an accident with Joe Doe who has sued the company for $1,000,000. Is Watson personally liable to Joe Doe for any of the $1,000,000 owed by the Company? Is Paul personally liable to Joe Doe for any of the $1,000,000 owed by the Company? Could Paul or Watson lose any part of their investment into the Company?
- Sebastian, Wyatt, and Mathew are close friends who graduated with master's degrees in accounting from an Ivy League institution. Instead of seeking employment, the friends decided to create their own accounting business. At their initial meeting, the friends could not decide whether to form a partnership or a limited liability company. You were approached as a company law student for advice on the type of business that would be appropriate for the friends. (a) What kind of business would you suggest to the friends? Justify your recommendation. Your reasoning should not be more than 500 words and should cover the following points: the requirement for the registration of the business in Jamaica, the advantages and disadvantages of the business type and information on the dissolution of the business. (b) Assume the friends opted to create a partnership, and has asked for your assistance in creating a Partnership deed; create a partnership deed that…George, an individual, is an architect and general contractor. Gracie is a wealthy individual. Newco’s Certificate of Incorporation states that it is authorized to issue 200 shares, no par value of common stock. Gracie transfers $500,000 of cash to Newco in exchange for 50 shares of Newco's stock. George signs a contract with Newco in which George will perform services designing a housing project and then acting as general contractor on the construction of that housing project. In exchange, George will receive 50 shares of Newco's stock. a. How will A be treated in this transaction? b. Suppose instead that George and Newco do not enter into a written contract. George transfers $500 in cash for 50 shares of Newco's stock while Gracie transfers $500,000 for 50 shares of Newco's stock. George then performs the architectural and contracting services for no further charge. Would this change your answerAs a professional accountant, Lisa works for an accounting firm that provides advisory services to various clients. In a particular transaction, Lisa finds herself representing more than one client, which creates a conflict of interest situation. Lisa's accounting firm is engaged to provide financial advisory services for two clients: Company A and Company B. These companies are involved in a potential merger transaction, and both have sought assistance from Lisa's firm. However, Lisa realizes that the interests of Company A and Company B may not align completely, leading to a conflict of interest. a) What actions should Lisa take to effectively manage the conflict of interest situation that arises when representing both Company A and Company B in their potential merger transaction?
- Sebastian, Wyatt, and Mathew are close friends who graduated with master's degrees in accounting from an Ivy League institution. Instead of seeking employment, the friends decided to create their own accounting business. At their initial meeting, the friends could not decide whether to fom a partnership or a limited liability company. You were approached as a company law student for advice on the type of business that would be appropriate for the friends. What kind of business would you suggest to the friends? Justify your recommendation. Your reasoning should not be more than 500 words and should cover the following points: i. The requirement for the registration of the business in Jamaica ii. The advantages and disadvantages of the business type iii. Information on the dissolution of the business. Assume the friends opted to create a partnership, and has asked for your assistance in creating a Partnership deed; create a partnership deed that includes at least six terms that the…Select the correct answers for the following: If ZZZ Corp., a domestic corporation registered and commenced operations in 2019, the MCIT shall apply when? a. 2021 b. 2022 c. 2023 d. 2024 If Inday, a CPA, established a partnership with Nico, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is: a. Taxable as a corporation b. Is not allowed by law c. A general professional partnership d. Is exempted from taxation as the partners ae the ones liable for the tax With the intention of limiting contact by taxpayers when dealing with the Bureau of Internal Revenue and at the same time save time and money, the Bureau allowed on-line filing of returns and other reports. This is in keeping with: a. Fiscal adequacyb. Administrative Feasibilityc. Uniformity in taxationd. Theoretical justice Professional tax collected by treasurers of LGUs is an example of:a. Privilege taxb. Direct taxc. Income taxd. Specific taxJordan and Carmen created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts?