For each of the following independent situations, indicate whether it is a violation of the AICPA's Rule of Conduct 101 on independence and explain your answer.
a. Barnes is a partner in a CPA firm and the firm performs an audit of Ovats Co.
i. Barnes practices in the same office as the lead engagement partner for the Ovats Co. audit but does not work on the audit.
Barnes owns a few shares of Ovats Co. stock.
ii. Barnes practices in the same office as the lead engagement partner for the Ovats Co. audit but does not work on the audit.
Barnes' wife owns stock in Ovats Co.
b. Putts is a new staff person and works on the audit of the Tate Corp.
Putts owns a few shares of Tate Corp.'s stock.
c. Nels is an audit senior and participates in the audit of Varsity, Co.
His non-dependent mother owns shares of stock in Varsity that are material to her net worth and of which Nels has knowledge.
d. Kard is an audit senior but does not participate in the audit of the Looney Corp. Kard owns 6% of Looney's stock.