Lee Corp., a small public compWhich statement best explains why the SEC has concerns about the independence of a CPA firm that has a business relationship with its audit client?

The firm may have a mutuality of interests with the audit client. The firm may have a conflicting interest with the audit client. The firm may depend too heavily on audit fees generated by the client. The firm may be overly skeptical about the client's financial position.any, merged with a privately held audit client of Lucienne & Company. Lee wished to engage Lucienne to audit the combined company, which will file reports with the SEC. From an independence perspective, what impact will the merger have with respect to the audit of the combined company?

Lucienne will need to comply with the SEC independence rules. Lucienne will need to perform a regulatory compliance review. Lucienne will need to apply the conceptual framework approach. Lucienne will need to request permission from the SEC to perform the audit.