The following questions concern possible violations of the AICPA Code of

The following questions concern possible violations

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4-19The following questions concern possible violations of the AICPA Code of Professional Conduct. Choose the best response.a.In which one of the following situations would be CPA be in violation of the AICPA Code of Professional Conduct in determining the audit fee? (1)A fee based on whether the CPA’s report on the client’s financial statements results in the approval of a bank loan.(2)A fee based on the outcome of a bankruptcy proceeding.(3)A fee based on the nature of the service rendered and the CPAs expertise instead of the actual time spent on the engagement.(4)A fee based on the fee charged by the prior auditor. b.The AICPA Code of Professional Conduct states that a CPA shall not disclose any confidential information obtained in the course of a professional engagement except with the consent of the client. In which one of the following situations would disclosure by a CPA be in violation of the code? c.A CPA’s retention of client records as a means of enforcing payment of an overdue audit fee is an action that is 4-20The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including Sarbanes-Oxley requirements on independence. Explain your answer as necessary.
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d.Recommending a tax shelter to a client that is publicly held.
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