An audit firm is engaged to audit a privately held business that has $500 million in consolidated total assets deposited in insured depository institutions. What independence standards would apply for this engagement?

A. Due to the amount of deposits in insured depository institutions, AICPA and PCAOB standards apply to this engagement.

B. Due to the amount of deposits in insured depository institutions, AICPA and PCAOB, and select SEC standards apply to this engagement.

C. Due to the amount of deposits in insured depository institutions, PCAOB and SEC standards apply to this engagement.

D. Due to the amount of deposits in insured depository institutions, AICPA, PCAOB and SEC standards apply to this engagement.

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The detailed answer for the above question is provided below The correct answer is B Due to the amou... View the full answer