Question :

State whether there is any violation of the AICPA Code of Professional Conduct, and the nature of the violation. Where there is a violation, determine the potential legal liability the accountant can face. Justify your position.

1. Tarbet, Esq., CPA has a law practice and recommended one of her clients to Wagner, CPA. Wagner agreed to pay Tarbet 15 percent of the fee for services rendered by Wagner to Tarbet's client. Some services can be doing a Review of the company books, and some may be solely consulting.

2. Cindy Williams, CPA, is the partner on the audit of a nonprofit charitable organization, and is also an honorary Board of Directors member. She is not involved in any organization functions, but likes to hang out with the management and other Board members in happy hour.

3. Rawling Martin, CPA took his client out fishing on the weekend before the audit was to begin. The client told Rawling that the accounts receivable records were as clean as a whistle, and that Rawling didn't have to waste money or valuable time on sending out avoidable confirmations that might just upset his good customers. Rawling agreed to not send them out, if the client caught the bigger fish that day. The client won the bet with the biggest fish, and Rawling didn't send out confirmations.