The clientele of Black & Company’s audit practice consists primarily of privately-owned, small- and middle-market companies.
Recently, the firm won two audits of public companies, including one issuer.
From an independence perspective, what impact will these new client engagements have on Black & Company?
A.) Black & Company will have to apply the IESBA’s conceptual framework approach.
B.) Black & Company will have to comply with DOL and GAO independence rules.
C.) Black & Company will need an annual peer review and PCAOB inspection.
D.) Black & Company will have to comply with SEC and PCAOB independence rules.
The answer is Black & Company will have to comply with SEC and PCAOB independence rules.