Response to the following problem:
Jim Quick was an audit partner with the international audit firm Get Rich Quick LLP. Mr. Quick managed several Canadian public company audit engagements as the senior audit partner. Mr. Quick was also a key member of the audit Firm's Management Committee based in Ottawa, Ontario. Mr. Quick's clients were all involved in merger and acquisition transactions. Mr. Quick regularly obtained information from his clients with respect to potential acquisitions and made his son, Johnny Quick, aware of these potential transactions. Johnny Quick purchased shares in the audit clients with funds provided by Mr. Jim Quick. Jim and Johnny Quick owned the shares jointly through a brokerage account which Mr. Jim Quick did not disclose to Get Rich Quick LLP in his annual independence signoff. The Ontario Securities Commission eventually uncovered Mr Jim Quick's activities and reported him to Get Rich Quick LLP.
Required:
1.Comment with reasoning on any rules of professional conduct which may have been breached by Mr. Jim Quick based on his actions.
2. Comment with reasoning on any potential legal liabilities which may have been created by Mr. Jim Quick based on his actions. Comment on any available defences.