According to court testimony, on 20 July 1995, Drew Bergman recommended to HMIs board of directors that

Question:

According to court testimony, on 20 July 1995, Drew Bergman recommended to HMI’s board of directors that Mei-ya Tsai be hired as the company’s chief accounting officer (CAO). One week later, BDO Seidman issued its on HMI’s 1995 financial statements. Under presently existing professional standards would this situation have presented an independence “problem” for BDO Seidman? Defend your answer.

Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...