CFA INSTITUTE ETHICS IN PRACTICE: Performance Reporting - Case 5 CASE STUDY Smithson, the CEO of Bolton Investment Management, uses JOLF LLP to audit its financial records, including checking the accuracy of client account records and verifying historical performance information. The annual cost of the audit is typically $10 million. Over time, Smithson hires JOLF to also provide consulting services to Bolton in a number of areas, including consulting on information- technology security, regulatory compliance, compliance with the CFA Institute Global Investment Performance Standards (GIPS), and other "ad hoc accounting advice." Eventually, Bolton pays JOLF close to $50 million per year for these other services. Smithson's actions are A. acceptable because JOLF's consulting work for Bolton improves the audit by enhancing JOLF's knowledge of Bolton's business. B. acceptable only if Bolton makes a determination that JOLF's historical knowledge of the firm will uniquely inform its consultant work. C. acceptable only if Bolton discloses its use of JOLF as both its auditor and as a consultant for other financial services. D. not acceptable. E. none of the above