1. The employment of your spousal equivalent at an audit client would generally impair your independence if he or she was employed as:

A.	A data entry clerk.
B.	A controller.
C.	Any of these choices would generally impair independence of a spousal equivalent.
D.	A warehouse supervisor.

2. A staff member below the managerial level belongs to an investment club composed of 20 members. She is the only person in the one-office CPA firm belonging to this club. Buy and sell decisions on investments are decided by majority vote, each member of the club having one vote. The members at their last meeting voted to purchase a minor number of shares of the Jones Company, an audit client of the firm in which the staff person is located. Although she does not work on that engagement, the staff person voted against the purchase.

A.	Since the staff person is below the managerial level and does not work on the engagement for this company, independence of the firm with Jones Company is not impaired.
B.	Since only a minor number of shares were purchased, independence of the firm with Jones Company is not impaired.
C.	Since the staff person could not control the actions of the club, independence of the firm with Jones Company is not impaired.
D.	Independence of the firm with Jones Company is impaired.

3. Monarch & Company, CPAs, has provided annual audit and tax advisory services to Brickstone Corporation for several years. Last year, Brickstone experienced severe cash flow problems and was unable to pay Monarch in full, leaving a significant balance unpaid. Monarch is ready to begin fieldwork for the upcoming audit. What options are available to Monarch and Brickstone?

A.	Brickstone may have another firm perform the field work and Monarch will review the workpapers and issue the report.
B.	Monarch may perform the audit as long as the unpaid fees relating to the prior year are paid in full before the current year report is issued.
C.	Monarch may set up a payment plan with Brickstone over the next two years to settle the unpaid fees.
D.	Brickstone may give the member a note with a maturity date no later than one year after the date of the current year report.