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Thomas Gilbert and Susan Bradley formed a professional corporation called Financial Ser-vices Inc.A Professional Corporation, each taking 50 percent of the authorized common stock. Gilbert is a CPA and a member of the AICPA. Bradley is a CPCU (Chartered Property Casualty Underwriter). The corporation performs auditing and tax services under Gilberts direction and insurance services under Bradleys supervision.One of the corporations fi rst audit clients was Grandtime Company. Grandtime had totalassets of $600,000 and total liabilities of $270,000. In the course of his examination, Gilbert found that Grandtimes building with a carrying value of $240,000 was pledged as collateral for a 10-year term note in the amount of $200,000. The clients fi nancial statements did notmention that the building was pledged as collateral for the 10-year term note. However, as the failure to disclose the lien did not affect either the value of the assets or the amount of the liabilities, and his examination was satisfactory in all other respects, Gilbert rendered an unqualifi ed opinion on Grandtimes fi nancial statements. About two months after thdate of his opinion, Gilbert learned that an insurance company was planning to loan Grand-time $150,000 in the form of a fi rst-mortgage note on the building. Realizing that the insurance company was unaware of the existing lien on the building, Gilbert had Bradley notify the insurance company of the fact that Grandtimes building was pledged as collateral for a term note.Shortly after the events described above, Gilbert was charged with several violations of professional ethics.Identify and discuss at least four ethical implications of those acts by Gilbert that were in violation of the AICPA Code of Professional Conduct.

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