Rules Of Professional Conduct

Front 1

Involving in activities that are not in the best interest of the profession

Back 1

RPC - 201.1

Maintaining the good reputation of the profession as indicated by the specific rules of the professional conduct

Front 2

Frank is aware of employee fraud but withholding information during an internal investigation

Back 2

RPC 211

Requires that members report breaches of the rules of professional conduct

Front 3

Franken deliberately oversted the budget by $ 5 million

Back 3

RPC 205

Prohibits members from signing or associating themselves with reports or statements which they know are false or misleading

Front 4

Franken deliberately oversted the budget by $ 5 million

Back 4

RPC 202

Requires that a member perform professional services with due care and integrity

Front 5

Franken's tax preparer discloses the information that he obtained from doing tax return to third parties

Back 5

RPC 208

Prohibits a member from improperly diclosing or using confidential information

Front 6

Franken accepts an audit engagement where his wife is the chief financial officer

Back 6

RPC 210

Prohibits a member from having conflict of interest

Front 7

Franken accepts an assurance engagement for a contingency fee whereby his fees will equal 2% of the largest expense account

Back 7

RPC 215

Prohibits a member from charinging a contingency fees for an assurance engagement

Front 8

Ms. Oh, CA, drafted several letters and backdated them

Back 8

RPC 201.1

Ms. Oh failed to maitain the good reputation of the profession as indicated by the specific rules of the professional conduct

Front 9

Ms. Oh, CA, drafted several letters and backdated them

Back 9

RPC 202

Requires a member to perform professional services with due care and integrity

Front 10

Ms. Oh advised client the client on capital gains treatement which not consistent with the standards

Back 10

RPC 203

Requires a members to maintain professional competence

Front 11

Ms. Oh prepares tax returns for a client on the sale of real estate properties. Ms. Oh has a 5% indirect ownership on those properties.

Back 11

RPC 204

Requires a member to be objective

Front 12

Upon an inquiry from the authorities, Ms. Oh prepared several backdated documents as evidence

Back 12

RPC 205

Prohibits a member from a signing or associating themselves from a report or statement that they know are false or misleading

Front 13

Ms. Oh knowingly included incorrect or overstated capital losses in order to avoid taxes on capital gains

Back 13

RPC 213

Prohibits a member from lending themselves to unlawful activity

Front 14

James, Richards and Thomas have been business for 10 years in the city of New Town. National firm is alos in business in New Town. James, Richards and Thomas places an advertisement claiming it is the oldest and the largest firm.

Back 14

RPC 217

Requires that general advertising can not be false and misleading. (James, Richards and Thomas is not the oldest and largest in New Town)

Front 15

Tom and Harry, CA, commissions a telemarketing firm to promote their practice

Back 15

RPC 301

Limits the method used to attract clients or solicit clients
(use of telemarketing firm is a breach of this rule)

Front 16

The receptionist of the CA firms provides confidential information to a reporter

Back 16

RPC 208

Prohibits a member from disclosing confidential information

Front 17

A partner joins SPI Inc and retains the right to influence the practice.

Back 17

RPC 204

This rule requires a member to be objective

Front 18

SPI Inc. accounted for 80% of CA firm's billings in 2001 and 65% of its professional staff utilization

Back 18

RPC 204

This rule requires a member to be objective (it appears that CA firms is not independence in appearance due its economic dependence on SPI Inc.)

Front 19

Keep Partners' Money Growing, CA, firm audits SPI Inc. Audit partner's wife puchases or invests in SPI Inc's shares after her husband disclosed to her about SPI's financial stability and growth potential.

Back 19

RPC 208

Prohibits a member from disclosing or using confidential information. (purchase of shares is a breach of confidentiality)

Front 20

Jack Box, CA, uses the audit information to his advantage (insider trading) to purchase shares of one of his clients

Back 20

RPC 213 Prohibits members from lending themselves to unlawful activity
(possible insider trading is an unlawful activity)

Front 21

CA fails on his duty to report breaches of rules of professional conduct

Back 21

RPC 211

Requires that a member to report breaches of rules of professional conduct

Front 22

Sheryl may not have maintained her professional competence by not attending any professional courses

Back 22

RPC 203.1

Requires a member to maintain professional competence

Front 23

Sheryl compiled the financial statements and corporate return for her father's company. Sheryl attached a standard Notice to Reader to the corporate statements

Back 23

RPC 204.3

Requires disclosure of impairment of objectivit

The standards for Notice to Readers do not require objectivity. However, Sheryl should disclose the nature of the relationship in the Notice to Reader

Front 24

Sheryl leaves tax workpapers in the dumpster a month after returns were filed

Back 24

RPC 218

Requires retention of records and documentation.

Front 25

Sheryl appeared in an advertisement for a local wedding photographer with her picture and 100% gaurantee for quality

Back 25

RPC 217

Requires that general advertising cannot be misleading and false.
(her gaurantee provides some form of assurance or engagement has occurred which is misleading or false.

Front 26

Sheryl during a review engagement on SPI Inc, a private corporation, discovers that capitalization of costs were incorrectly applied. She does nothing about it.

Back 26

RPC 206

Requires that a member complies with professional standards and applies accordingly.