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Which 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 conficting interest with the audit client.

$$ The firm may beverl

Titan Brewery plans to file an initial public offering $($IPO$)$ in December $2024.$ The IPO fliling will include calendar year$-$end financial statements for $20$X$1,20$X$2,$ and $20$X$3.$ Petersen & Benes. CPAs, has performed calendar year. end audits of Titan since $20$X$0$ and helped Titan prepare moethly financial statements in accordance with statement best describes why Petersen & Bener may continue to perform Than's audit when it files its IPO under SEC independence rules?

Petersen & Benez performed only permissible accounting services during the period covered by the financial statements. the IPO filling.

Petersen $5$ Benez: will pay for an independent firm to reperform the accourting services for all periods in the fling.

Petersen & Bener's fee for auditing the combined company will be liess flun $5)$ of lis revenues.tical about the client's financial position.

$$ The firm may have a mulualiy of interests with the audit client.

$$ The firm may depend too heavily on audit fees generated by the client.

$$

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