The following are independent unrelated questions.
Selma Char decided to set up her own accounting practice. To attract new clients, Selma name her firm Quality CPAs - Perform services at the lowest prices"
CPA has recently passed the exam and is now licensed to practice in Hamilton ON. He approaches a new client with a proposal to bid on the audit for a fixed fee of $25,000.
Tanis Construction has applied for a loan at the local bank. The bank has requested audited financial statements. The audit firm agrees to perform the audit of Tannis. for a fee below what would be normally charged. In exchange for the lower fee, Tannis agrees to pay the firm an additional $5,000 if the loan application with the bank is approved.
During lunch, you overhear the following conversation amongst a CPA student and a CPA as follows:
Buchmun Logistics is about to acquire Logomun that will form the largest distribution network in the greater Hamilton area. You should tell your closest friends to buy the shares of Logmum so they can capitalize on the share increase before it gets acquired.
Required:
Describe the rules of professional conduct that are relevant for each of the situations described above.
Be sure to list the corresponding rules of professional conduct number where appropriate. Explain if they have been violated.