$4-26($OBJECTIVES $4-5,4-6)$ The following relate to auditors$$ independence: Required a$.$Why is independence so essential for auditors? b$.$Compare the importance of independence of CPAs with that of other professionals, such as attorneys. c$.$Explain the difference between independence in appearance and independence of mind. d$.$Assume that a partner of a CPA firm owns two shares of stock of a large audit client on which they serve as the engagement partner. The ownership is an insignificant part of their total wealth. $(1)$Has the partner violated the AICPA Code of Professional Conduct? $(2)$Explain whether the ownership is likely to affect the partner$$s independence of mind. $(3)$Explain the reason for the strict requirements about stock ownership in the rules of conduct. e$.$Discuss how each of the following could affect independence of mind and independence in appearance, and evaluate the social consequence of prohibiting auditors from doing each one: $(1)$Having the annual audit performed by the same CPA firm for $10$ years in a row $(2)$Owning stock in a client company $(3)$Having bookkeeping services for an audit client performed by the same person who does the audit $(4)$Having a spouse who is the chief financial officer of a client company $(5)$Having management select the CPA firm $(6)$Recommending adjusting entries to the client$$s financial statements and preparing financial statements, including footnotes, for the client $(7)$Providing valuation services on complex financial instruments for an audit client performed by individuals in a department that is separate from the audit department f$.$Which of $(1)$ through $(7)$ in part e$.$ are prohibited by the AICPA Code of Professional Conduct? Which are prohibited by the Sarbanes$$Oxley Act or the SEC?