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  • Visit the AICPA’s website (www.aicpa.org), under Research Standards. On the left side of the page click “Code of Professional Conduct.”

    Find Section 1.200 of the Code of Professional Conduct. Research the relevant rules, interpretations, and ethics rulings to answer the following questions: 

    a.

    Would independence be considered impaired if a member joined a trade association that is an entity of the firm?

    b.

    A member provides extensive advisory services for an entity. In that connection, the member attends board meetings; interprets financial statements, forecasts, and other analyses; and counsels on potential expansion plans and on banking relationships. Would independence be considered impaired under these circumstances?

    c.

    If a member signs or cosigns checks issued by a debtor corporation for a creditors’ committee in control of the debtor corporation, which will continue to operate under its existing management, would independence be impaired with respect to the debtor corporation?

    d.

    A member has been designated to serve as an executor or trustee of the estate of an individual who owns the majority of an entity’s stock. Would independence be considered impaired with respect to the entity?

    e.

    A member serves as a director or officer of a United Way or similar fund-raising organization. Certain local charities receive funds from the organization. Would independence be considered impaired with respect to such charities?

    f.

    An entity of the member’s firm has not paid fees for previously rendered professional services. Would independence be considered impaired for the current year?

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