3 the following situation involves a possible

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3. The following situation involves a possible violation of the AICPA's Code of Professional Conduct. For each situation, (1) determine the applicable rule number from the Code, (2) decide whether or not the Code has been violated, and (3) briefly explain how the situation violates (or does not violate) the Code. Auditor Tex Gato of the CPA firm Smackey and Smackey, CPAs, enjoyed auditing his favorite client, Super Pup Dog Food because the client would allow him to take home to his dog a variety of dog food samples that amounted to a year's worth of dog food. Rule # 102 Violation?
 Yes Reason: A year's worth of dog food is not just a small sample that is negligible in value. The audit basically gives him free dog food for the year between audits. This is a conflict of interest in that the client is subsidizing the auditor and so the auditor may feel reluctant to irritate the client and cut off the doggie supplies. This reduces his objectivity. 4. The following situation involves a possible violation of the AICPA's Code of Professional Conduct. For each situation, (1) determine the applicable rule number from the Code, (2) decide whether or not the Code has been violated, and (3) briefly explain how the situation violates (or does not violate) the Code. Howard Cunningham & Co., CPAs, designates its firm as Members of the American Institute of Certified Public Accountants. All of the partners of the firm are CPAs. However, one of the partners has recently chosen to allow her membership to lapse because of personal reasons. Rule # 502 Violation?
 Yes In order to advertise that the firm is a member of the AICPA, all partners must be members of the AICPA. 5. Brandt, CPAs has obtained Big-Bucks, a new publicly-held client. Big-Bucks has various accounting-related needs that Brandt, CPAs would like to fulfill. Partner-in- charge D. Brandt has discussed with Big-Bucks the possibility of performing the annual audit of Big-Bucks as well as preparing the tax returns, business plan, quarterly write-up services, and providing consultation on the viability and valuation of mining gas reserves in Tennessee. An outside expert would be hired by Brandt CPAs to provide expert advice to the CPA firm on mining gas reserves. Additionally, Brandt, CPA's audit manager who will be assigned to this audit has previously been approached by Big-Bucks to come work for the company as Chief Financial Officer. The audit manager has refused the offer, since his cousin's sister-in-law is a 10 percent shareholder in Big-Bucks and does not want her to have any say in his employment.
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Under the Sarbanes-Oxley Act of 2002, what issues do you see and how would you advise Brandt, CPAs?
 Is there ever a time when Brandt, CPAs could perform any of these services for Big-Bucks?
 Issues include: 1. You can't do the write-up and be the auditor. You would be auditing your own work. 2. You can't consult and be the auditor. If you are an advocate for the client, you are not neutral. 3. The CPA does not appear to have the expertise (needs outside expert).
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