For each of the following cases indicate if the action by a member CPA is a violation of the AICPA Code of Professional Conduct and cite the relevant rule.
A. Disclosed client information to another CPA firm during the discussion of a merger of the two firms.
B. Allow a company to change the way it values inventory to a method that is not GAAP because following GAAP would be misleading.
C. Had a new car loan from a bank that is a client when the bank holds the title to the car.
D. Based fee on approval of a bank loan dependent upon audited financial statements.
E. Did not comply with "Government Auditing Standards on a government audit."
Correct Answer:
Verified
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