Question
Which of the following employment relationships does not impair independence under SEC rules? A. The Badger audit firm audits ABC Co., a publicly traded company.
Which of the following employment relationships does not impair independence under SEC rules? A. The Badger audit firm audits ABC Co., a publicly traded company. Tam is on Badger’s audit team for the audit. His sister is a direct report of the CFO of ABC. B. The Otter audit firm audits XYZ Co., a publicly traded company. Tim was on Otter’s audit team for the audit last year, but just a few days after last year’s audit was completed, Tim severed all ties with Otter and went to work as the controller at XYZ. C. The Weasel audit firm audits LMN Co., a publicly traded company. LMN’s audit cycle runs from January 1 to December 31. Tom was on Wea sel’s audit team for the 2016 audit. He severed all ties with Weasel on March 1, 2017. Tom went to work in a significant accounting position at LMN on January 2, 2019. D. The Possum audit firm audits PQR Co., a publicly traded company. Max is lead partner on the PQR audit team. Max’s sister Estrella is CFO of PQR. Max and his sister are estranged.
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