1. Discuss how each of the following could affect independence of mind and indepen-

dence in appearance, and evaluate the social consequence of prohibiting auditors from doing each one: (1) Owning stock in a client company. (2) Having bookkeeping services for an audit client performed by the same person

who does the audit. (3) Having a spouse who is the chief financial officer of a client company. (4) Having the annual audit performed by the same CPA firm for 10 years in a row. (5) Having management select the CPA firm. (6) Recommending adjusting entries to the clients financial statements and

preparing financial statements, including footnotes, for the client. (7) Providing valuation services on complex financial instruments for an audit client performed by individuals in a department that is separate from the audit

department.