Each of the following scenarios involves a possible violation of the rules of conduct. Indicate…

Each of the following scenarios involves a possible violation of the rules of conduct. Indicate whether each is a violation and explain why you think it is or is not. a. John Brown is an PA, but not a partner, with three years of professional experience with Lyle and Lyle, Public Accountants, a one-office public accounting firm. He owns 25 shares of stock in an audit client of the firm, but he does not take part in the audit of the client and the amount of stock is not material in relation to his total wealth. b. In preparing the corporate tax returns for a client, Phyllis Allen, a PA, observed that the deductions for contributions and interest were unusually large. When she asked the client for backup information to support the deductions, she was told, “Ask me no questions, and I will tell you no lies.” Phyllis completed the return on the basis of the information acquired from the client. c. A private entity audit client requested assistance of Kim Tanabe, a PA, in the installation of a computer system for maintaining production records. Kim had no experience in this type of work and no knowledge of the client’s production records, so she obtained assistance from a computer consultant. The consultant is not in the practice of public accounting, but Kim is confident of her professional skills. Because of the highly technical nature of the work, Kim is not able to review the consultant’s work. d. Five small Moncton public accounting firms have become involved with an