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Select an option below O Only statement a. is true 0 Only statement b. is true The following scenarios relate to an audit of an employee benefit plan subject to the Employee Retirement Security Act of 1974 (ERISA). The audit is conducted under the independence rules of the Department of Labor and other appropriate guidance. For each scenario below, select from the option list provided to indicate whether statements a. and b, are true. Each choice may be used once, more than once, or not at all. O Both statements a. and b. are true O Neither statements a. nor b. are true Statement Answer E a. The auditor should consider the Department of Labor guidelines for determining independence. b. The auditor should consider the AICPA Code of Professional Conduct for determining independence. Statement Answer LE a. The auditor may have a direct financial interest in the benefit plan and maintain independence. b. The auditor may have an immaterial indirect financial interest in the benefit plan and maintain independence. a. The auditor may design and implement internal controls for the plan and maintain Independence. b. The auditor may make disbursements on behalf of the plan and maintain independence. 2. The auditor is auditing the employee benefit plan of XYZ Company, the plan sponsor. 4. The auditor is considering whether (she is independent of the employee benefit plan. Answer Statement Answer Statement a. The auditor can audit the employee benefit plan without auditing XYZ Company. b. Regardless of whether the auditor audits XYZ Company. (she must be independent of XYZ Company E a. As long as the auditor removes an independence violation by the time the report is issued, (s)he would be considered independent. b. Auditor independence would be impaired if the auditor made policy decisions for the plan