1. Explain the rules in accounting to determine whether an investment in a marketable security should be accounted for as trading, available-for-sale, or held-to-maturity. Include in your discussion how such classification affects the financial statements.
2. Who are the stakeholders in this case? What expectations should they have and what are the ethical obligations of Deziloo and its CPAs to the stakeholders? Use ethical reasoning to answer this question.
3. Using the AICPA Code of Professional Conduct as a reference, what ethical issues exist for Rikey, Lucy, Fred and Ethel, and Deziloo LLP in this matter? What role does auditor virtue play in determining what to do in this case?