Problem:
Melissa Barry, CPA, is the auditor of Audio Video, Inc. Audio Video has not paid Melissa's audit fee for the past 2 years. Melissa is working on this year's audit of Audio Video.
Required:
Determine whether Rule 101 of the AICPA's Code of Professional Conduct, has been violated. Briefly explain why the situation violates or does not violate the code.
Note: Please provide through step by step calculations.