You are a CPA working for Martinez, Martin and Malone, a CPA firm in Scranton, P
ID: 385591 • Letter: Y
Question
You are a CPA working for Martinez, Martin and Malone, a CPA firm in Scranton, PA. Michael Scott is the regional manager of Dunder Mifflin, one of your biggest clients. Michael offers to give you two tickets to Sandals, an all inclusive resort in Jamaica, because he just broke up with his girlfriend Jan.
Can you accept the tickets?
If so, cite and discuss a section of the AICPA Code of Conduct that allows you to accept the tickets.
If not, cite and discuss a section of the AICPA Code of Conduct that prohibits you from accepting the tickets.
If Michael Scott was not only an employee of a client but also your brother, how would that affect your answer?
If the client was leaving the firm and you were finishing up the last audit for this (soon to be former) client, how would that affect your answer?
Explanation / Answer
If not, cite and discuss a section of the AICPA Code of Conduct that prohibits you from accepting the tickets.
As per rule 102, a CPA may accept a gift that is “reasonable in the circumstances” without impairing objectivity or integrity.
In this specific case there is no comparing objectivity your integrity and other client is not a service provider but are requirer of the service, this gift can be accepted by CPA.
It would have much easier to accept the specific gift if he would have been my brother. Similar conditions would have been applied in this is specific scenario also as availability of non objectivity and integrating availability would make it legal to get the specific gift.
Is the client was leaving the form and I were finishing up last added then accepting my gift could not be legal in the situation according to the rule 102. According to the rule the governing gift acceptance for attest clients is totally prohibited. Attest engagement can be defined in which CPA is responsible for issuing a report or an assertion.
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