2. Required: Each of the following situations involves a possible violation of the AICPAs Code of Professional Conduct, Rule 101- Independence. The audits are for public companies. Indicate whether each situation violates Independence. Explain why or why not.

Susana Millar is an audit manager for Bircham, Dyson, & Bell who audits Unigate Dairies. For her birthday, Susanas 13 year-old daughter received a small (immaterial) amount of stock in the Creamery Factory along with small shares in many other companies; she intends to keep the stocks until she goes to college. Creamery is a large subsidiary of Unigate Dairies