Question
4. Logan, controller of Lone Mfg., wanted to leave that company and join the firms auditors, Greg Popper, CPAs, a one-office public accounting firm. The
4. Logan, controller of Lone Mfg., wanted to leave that company and join the firms auditors, Greg Popper, CPAs, a one-office public accounting firm. The accounting firm agreed to take him in as a partner provided they did not lose their independence with Lone Mfg. because of his employment. In order to insure that they remain independent of Lone Mfg. several things would be required. Which if any, of the following is NOT one of the requirements?
A. Logan must cease to participate in an employee benefit plan sponsored by Lone Mfg. since there is no legal requirement allowing Logan to participate in the plan.
B. Logan must dispose of all material indirect financial interests in Lone Mfg.
C. Logan cannot be involved on the attest engagement team when the engagement covers any period during which he was employed by Lone Mfg.
D. Logan must dispose of all immaterial indirect financial interests in Lone Mfg.
E. All of the above are required.
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