The following are a number of different situations where there may be violations

of the ethical

principles .You are asked to state whether there has been a violation of the

Accountants Code of Ethics and state which ethical principle has been violated

briefly providing a reason for your opinion:

(a) Peter Harmon , professional accountant, does the bookkeeping, prepares the

tax returns and provides various management services for Bunker L td .When

providing these services it frequently advises its clients to buy its computer

equipment from Computer Services Ltd. Computer Services has agreed to pay

Harmon a 10% commission if the referral leads to sales for Computer Services