A CPA Firm only prepares tax returns for its clients. The CPA Firm wants to prepare the tax return of a Sister Company of one of its Clients. Both the Sister Company and the Client are material to the Parent company. Under these facts alone, the CPA Firm:

(a) must remain independent from the Sister Company due to the Affiliate definition;

(b) must remain independent from the Sister Company due to the Network Firm definition.

(c) must remain independent from the Sister Company in accordance with Rule 1.200.000 et seq, the Independence Rule.

(d) none of the above.

Answer rating: 100% (QA)

b must remain independent from the Sister Company due to the Network Firm definition A sister compan... View the full answer