1. When you recently were dining at a restaurant, you asked your food server whether the seafood appe- tizer uses fresh, top-quality crab and shrimp, or whether you should just skip ordering an appetizer.
1. When you recently were dining at a restaurant, you asked your food server whether the seafood appe- tizer uses fresh, top-quality crab and shrimp, or whether you should just skip ordering an appetizer.
2.
The food server told you that the seafood appe- tizer was “decadently delicious and only used fresh seafood.” Did the food server have a conflict of inter- est in giving this advice? Youhavebeenretainedtotestifyasadamagesexpert at a binding arbitration about the financial loss your client sustained when a supplier shipped it defective raw materials. Several days before the arbitration proceeding, you discovered that the arbitrator is a member of your country club who occasionally plays golf with you.
Do you have a conflict of interest in testifying under oath on behalf of your client?
Shouldyoudiscussthiscasewiththearbitratorif you see him at the country club?
Doesthearbitratorhaveaconflictofinterest?
3.A CPA became fascinated by the precious metals trading industry while auditing a client in that indus- try. A few years later, this CPA discontinued the practice of accounting and become an independent precious metals trader. Her former client was one of several major competitors in that industry. Did this CPA violate the Code of Conduct’s rules against conflicts of interes?
t5. “Sleazy” Slenoso, is a convicted ex-governor who has been indicted by a federal grand jury for running a Ponzi scheme that cost investors millions of dollars. As part of the government’s allegations, Sleazy is accused of murdering angry investors. As a result, if Sleazy loses, a judge might impose the death penalty on him. Sleazy is a notorious character because he has a large tattoo of a pink flower on his forehead, and he is the son of a well-known supermodel and famous boxer.
Sleazy wants to hire you to prove that he prop- erly accounted for investment funds and show that no one lost “even one dime.” He cannot afford to hire you, though, so he has offered to give you the exclusive rights to any movie or book written about him in return for your services. Do you have a conflict of interest in testifying on his behalf at a criminal trial?
24. You have prepared the tax return for a marries couple for many years. This couple now has approached you with the question: “Should we file married fil- ing jointly or married filing separately?” You like both spouses equally and do not have a preexisting social or personal relationship with either of them. Do you have to make any special disclosures before you answer their question?
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