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20 Mariposa CPA's acquired Stockton CPA's in December 20X4. Mariposa is considered the acquiring firm and Stockton is considered the acquired form. The combined firms
20 Mariposa CPA's acquired Stockton CPA's in December 20X4. Mariposa is considered the acquiring firm and Stockton is considered the acquired form. The combined firms will continue as Mariposa & Stockton CPA's after the acquisition. Which of the following is correct relating to independence in this situation If the acquiring firm provided prohibited nonattest services to an attest client of the acquired firm during the period covered by the financial statements, threats to compliance with the "Independence Rule" will not be at an acceptable level and cannot be reduced to an acceptable level by the application of safeguards. Accordingly, the acquiring firm's independence will be impaired with respect to the attest client If the acquired firm provided prohibited nonattest services to an attest client of the acquiring firm prior to the financial statement period covered by the acquiring fire's next attest report, the ac quiring firm's independence would be impaired Botha and b. are correct Neither a nor b. is correct
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