Assume a CPA serves as an audit client’s business consultant and performs each of the following services for the client. Discuss whether independence would be impaired in each instance and why.
a) Advising on how to structure its business transactions to obtain specific accounting treatment under GAAP
b) Advising and directing the client in the accounting treatment the client employed for numerous complex accounting apart from its audit of the client’s financial statements
c) Selecting the audit client’s most senior accounting personnel by directly interviewing applicants for those positions.