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August 21, 2022

What should the accounting firm do with respect to informing Beauda Medical Center about the equipment?

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:

1. 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?

2. 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?

3. What, if anything, should the accounting firm do about the malfunctioning equipment at CSM?

4. What should the accounting firm do with respect to informing Beauda Medical Center about the equipment?

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