Which of the following is defined as an act discreditable in either the Rules or
ID: 2408628 • Letter: W
Question
Which of the following is defined as an act discreditable in either the Rules or the interpretations of the AICPA's Code of Professional conduct? (Hint: think of AICPA's bylaws) a. A CPA was arrested for road rage and released with a $370 traffic finde. b. A CPA retained a schedule of legal expense analyses, which was prepared by the client at the request of the auditor, when the client was 6 months in arrear in paying the CPA's audit fee of $12,000 c. A CPA was arrested for shoplifting and sentenced to do 1200 hours of community services. d. A CPA was arrested for trespassing a private property and was imprisoned for 16 months.Explanation / Answer
B. a Cpa retained a schedule of legal expense analysis, which was prepared by the cleint at the request of the auditor, when the client was 6 months in arrear in paying the CPA's audit fee of $12000.
All other options are not related to professional conduct, rather they are personal acts of the concerned person, who may be a CPA or some other professional. In case of option B, keeping of records is not allowed under professional ethics and bylaws for CPA's.