Each of the following situations involves a possible violation ofthe AICPA Code of Professional Conduct. For each situation, state the applicable section ofthe rules of conduct and whether it is a violation.a. Emrich, CPA, provides tax services, management advisory services, and bookkeepingservices and also conducts audits for the same nonpublic client. Because the firm issmall, the same person often provides all the services.b. Franz Marteens is a CPA, but not a partner, with 3 years of professional experiencewith Roberts and Batchelor, CPAs. He owns 25 shares of stock in an audit client ofthe firm, but he does not take part in the audit of the client, and the amount of stockis not material in relation to his total wealth.c. A nonaudit client requests assistance of M. Wilkenson, CPA, in the installationof a local area network. Wilkenson had no experience in this type of work andno knowledge of the client’s computer system, so he obtained assistance from acomputer consultant. The consultant is not in the practice of public accounting,but Wilkenson is confident of his professional skills. Because of the highly technicalnature of the work, Wilkenson is not able to review the consultant’s work.
Each of the following situations involves a possible violation of
the AICPA Code of Professional Conduct. For each situation, state the applicable section of
the rules of conduct and whether it is a violation.
a. Emrich, CPA, provides tax
services and also conducts audits for the same nonpublic client. Because the firm is
small, the same person often provides all the services.
b. Franz Marteens is a CPA, but not a partner, with 3 years of professional experience
with Roberts and Batchelor, CPAs. He owns 25 shares of stock in an audit client of
the firm, but he does not take part in the audit of the client, and the amount of stock
is not material in relation to his total wealth.
c. A nonaudit client requests assistance of M. Wilkenson, CPA, in the installation
of a local area network. Wilkenson had no experience in this type of work and
no knowledge of the client’s computer system, so he obtained assistance from a
computer consultant. The consultant is not in the practice of public accounting,
but Wilkenson is confident of his professional skills. Because of the highly technical
nature of the work, Wilkenson is not able to review the consultant’s work.
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