The AICPA stands for American Institute of Certified Public Accountants that has issued a code of conduct for the auditors to follow while auditing the statements of a company. Section 101 deals with the independence rules and violation of such independence rules by the auditor can lead to disciplinary action from AICPA. To explain: The situations given in the question violates the independence rule of the AICPA’s code of professional conduct or not.

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Chapter 19, Problem 19.28P

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Introduction: The AICPA stands for American Institute of Certified Public Accountants that has issued a code of conduct for the auditors to follow while auditing the statements of a company. Section 101 deals with the independence rules and violation of such independence rules by the auditor can lead to disciplinary action from AICPA.

To explain: The situations given in the question violates the independence rule of the AICPA’s code of professional conduct or not.

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