1. It has been said that independence is the cornerstone of the accounting profession. Explain what this means. How do auditors protect against impairments of independence?

2. Assume that a CPA serves as an audit clients business consultant and performseach 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 that the clientemployed for numerous complex accounting, apart from its audit of the clientsfinancial statements

c. Selecting the audit clients most senior accounting personnel by directlyinterviewing applicants for those positions.