Becker & Smith, CPAs, performs a financial statement review for BAM Markets (BAM).
Caroline, the manager on the job, learns that Don violated the independence rules by
not disclosing that his sister works in a key position at BAM. Under the AICPA
interpretation, Breach of an Independence Interpretation, what is the first thing
Caroline should do?
a.Speak to the review partner about reperforming some of Don's audit work.
b. Determine whether Don's participation on the review impaired the team's
objectivity.
c. Disclose the violation in accordance with policy to the appropriate person
in her firm.
d. Ask Human Resources to remove Don from the engagement team
immediately.