Auditor Independence

Facts: Assume that Jim Whites recently-deceased grandfather left him an inheritance, which includes a direct invest-

ment in shares of WellCorp, his audit client. Jim is the partner on the WellCorp engagement; WellCorp is a privately-

held company. Jim anticipates that, if necessary, the shares could be sold immediately.

Required: Determine 1) whether Jim is a covered member with respect to this client, and 2) whether it is appropriate

for Jim to keep the inherited shares of WellCorp stock

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