British Columbia Institute’s Rules of Professional Conduct violation.

Each of the following situations involves a possible violation of the British Columbia Institute’s Rules of Professional Conduct. For each situation,

(1) identify the relevant Rule (i.e. rule # and paragraph),

(2) decide whether or not the Rule has been violated, and briefly explain how or why the situation violates (or does not violate) the Rule.  Please present your response in the tabular format provided. (9 marks)

Leslie King recently opened a public accounting practice in Burnaby.  In order to devote all of her attention to her current clients, she hired a professional marketing agency to secure new clients. King has agreed to pay the agency the greater of $2,000 or 10% of the fees charged in the first year in respect of any client secured by the agency. All new clients will be advised of the payment arrangement between King and the agency. (3 marks)

B)    Amaan James is a sole practitioner in Victoria.  His practice is restricted to private companies.  He has recently completed a Review Engagement of his largest client, Zoom Manufacturing Inc. (Zoom), which currently accounts for 35% of his annual billings.   The client was so impressed with Amaan’s work that he has asked him whether he would be prepared to design and implement a new financial information system for Zoom. (3 marks)

C)    Texada Mines Inc is a public company whose shares are listed on the Toronto Stock Exchange.  Sinclair and Co Chartered Accountants, the company’s auditor, has just received the preapproval from Texada’s audit committee to undertake the internal audit services of the company. (3 marks)

Scenario Identify the Rule of Conduct Affected Violation? Yes/No Discussion A. B. C.


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