B corren professional corporation a cpa firm assists

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b. Corren Professional Corporation, a CPA firm, assists Selkirk Industrial Corporation with its quarterly and annual financial reports. Jim Roberts, a CPA with Corren, after reviewing the latest information provided by Selkirk’s CEO, calls a friend and suggests making certain stock and bond trades involving Selkirk’s securities. Roberts will not benefit financially from these suggested trades and refuses to get involved. 3-13
Chapter 03 - The Financial Information Marketplace ANSWER: Here the CPA, Jim Roberts, would probably be considered a de facto Company insider. He seems to be misappropriating information about Selkirk, whether or not he stands to directly profit from his actions. 3-14
Chapter 03 - The Financial Information Marketplace c. James Smith works for Cohen and Cooper, a local law firm, and while browsing in his firm’s law library, he discovers a new report from a legal client of his colleague, Roscoe Adams, that predicts serious financial problems if the client proceeds with its recently drafted strategic plan. Smith subsequently discovers discreetly that the strategic plan is to be launched next week. He also learns that Roscoe is selling the client’s stock short through his broker. Smith quietly advises Roscoe not to make the short sale and lets the matter drop.
d. Samuel Joule learns from conversations with Sarah Conklin, a bartender at a local bar, that neighboring Locket Corporation has recently developed a warning device that may help prevent air collisions and may be worth tens of millions of dollars once announced to the public. Neither Joule nor Conklin works for Locket, though he has been dating Miss Conklin. Both of these individuals decide to purchase 1,000 shares of Locket’s stock before Locket holds a press conference to announce the new air collision device. Joule and Conklin will use a bank loan to finance the purchase of Locket’s shares. A wedding is planned if the transaction pays off.

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