A small CPA firm provides audit services to a large local company. Almost eighty percent of the CPA firm's revenues come from this client. Which statement is most likely to be true?

Multiple Choice

Appearance of independence may be lacking.

The small CPA firm does not have the proficiency to perform a larger audit.

The situation is specifically prohibited in the AICPA$$s Code of Conduct.

The auditor should provide an "emphasis of a matter paragraph" to his$/$her audit report adequately disclosing this information and then it may issue an unqualified opinion.