Ben Big is a partner in the Cleveland office of the national accounting firm of Price Brickhouse.He owns 1,000 shares of common stock in Public,Inc.,an audit client of the firm.This amount is not material to his personal investments.The Public,Inc.audit is done out of the New York office.Ben Big has not informed the firm that he owns the shares because he is not on the audit and it is not done out of the Cleveland office.
Required: The situation above involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number,but should clearly describe the rule in question.

Question

Quizplus · Accepted Answer

The Answer of Ben Big is a partner in the Cleveland office of the national accounting firm of Price Brickhouse.He owns 1,000 shares of common stock in Public,Inc.,an audit client of the firm.This amount is not material to his personal investments.The Public,Inc.audit is done out of the New York office.Ben Big has not informed the firm that he owns the shares because he is not on the audit and it is not done out of the Cleveland office.
Required: The situation above involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number,but should clearly describe the rule in question.

Ben Big Is a Partner in the Cleveland Office of the National