After reading Case 4-2: Beauda Medical Center, post your answers to the following questions in the second Chapter 4 discussion forum. Be sure to support and explain your answers.
QUESTIONS:
- Assume that both Popperson and Snow are CPAs. Do you think that Snow violated his confidentiality obligation under the AICPA Code by informing Popperson about the faulty equipment at CSM?
- Apply the steps in Exhibit 4.3, Ethical Conflicts and Compliance with the Rules of Conduct, and analyze whether the relationships described in this case create a conflict of interests and, if so, what safeguards should be implemented to mitigate the threat now and in the future?
- What, if anything, should the accounting firm do about the malfunctioning equipment at CSM?
- What should the accounting firm do with respect to informing Beauda Medical Center about the equipment?
Sample Solution