[4] The following are situations that may violate the Code of Professional Conduct. Assume, in each case, that the CPA is a partner, unless stated otherwise. Discuss whether the facts in any of the situations indicate violations of the Code of Professional Conduct. If so, identify the nature of the violation(s):
10. Samir, CPA, is hired to do the audit of Al-Sharif Transportation Co. Samir owns a substantial limited partnership interest in a construction company. Zubair Al-Sharif is a 100% owner in Al-Sharif Transportation Co. Al-Sharif also owns a substantial limited partnership in the same construction company as Samir.
11. After the auditor of a construction company suddenly quit, Basil, CPA, was hired to do the accounting for the company. The audits are due within two weeks, and there are several discrepancies between bank statements and the general ledger. He spoke to his supervisor, who told him to reconcile the two books as quickly as possible.
12. Jamal, CPA, works for Gilgamesh Practices. As part of his job, he is in charge of the audit, tax return, bookkeeping, and management services work for the Uthman Decorating Company. Makin Uthman relies on Jamal’s advice before making any business decisions that could significantly affect the taxes or financial statements of his company. Jamal also attends all meetings of the company’s board of directors. Because he doesn’t know too much about the industry, Jamal attends some professional development courses in interior decorating. Recently, it was announced that Uthman’s vice president will be retiring soon, and Uthman has hinted that he would like Jamal to join his company with a higher pay than he is currently receiving at Gilgamesh.
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