Determine accounting firms independence with the client

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Question 1: In a one-office public accounting firm. a partners spouse is employed as a receptionist by an audit client. She participates in this client's retirement plan. The plan is offered to all employees in similar positions. Some of the plan's assets are invested in the client's stock. Her share of the plan's assets is not material to her or her husband. Her husband does not do any work for this client. Which of the following statements is correct with respect to the accounting firm's independence with this client?

A) Even If the spouse were employed in a key position. independence would still not be impaired.

B) Independence is not impaired.

C) Independence is Impaired.

D) The AICPA independence rules and interpretations do not cover this type of situation.

Reference no: EM132463137

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