Sarah Marin, CPA, is a senior auditor in the San Francisco office of Coopers & Snoopers, CPAs. Sarah's father is employed as the controller of Line Electronics, a large, publicly held company in Michigan. Line Electronics is one of Coopers & Snoopers audit clients. Neither Sarah nor the San Francisco office of Coopers & Snoopers is involved in the audit of Line Electronics.
For this situation, (1) determine the applicable rule number from the code, (2) decide whether or not the code has been violated, and (3) briefly explain how the situation violates (or does not violate) the code.