Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 2

Acts discreditable. According to an article in a midwestern newspaper, stealing $2.3 million from the Dakota Credit Union was simple. Joe Kramer, who lost the money gambling, was the credit union's only full-time employee. Kramer said he began gambling to make the payments on a $50,000 loan to a friend because the friend was unable to repay it. In a one-year period, Kramer made fifteen trips to Las Vegas, gambling to cover the $50,000 loan. While waiting for sentencing on a federal charge of looting, Kramer was fired from the credit union 1 week before the state Credit Union Board declared the institution insolvent and closed its doors.
a. If Kramer is a licensed CPA, has he violated the AICPA Code of Professional Conduct
b. Should Kramer be permitted to practice as a CPA when he is released from prison Explain your answer.