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CASE : Mary Reed, a new staff auditor with the firm, has recently separated from her husband. Mary has filed for divorce, but the divorce cannot become final for at least five mots. The property settlement is being bitterly contested. Mary's husband has always resented her professional career and has just used community property to acquire one share of common stock in each of the publicly owned companies audited by the office in Mary works.
1. Set forth arguments indicating that the firm's independence has NOT been impaired.
2. Set forth arguments indicating that the firm's independence HAS been impaired.
3. Express your personal opinion. Identify those arguments from pat (a) and (b) that you found most persuasive. If you believe that the firm's independence has been impaired, make suggestion about how the problem might be resolved.
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You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.
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