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Banks & Jones, CPAs, performs a financial statement review for Meyer Markets. Charlie, the manager on the job, learns that Dan, a member of the
Banks & Jones, CPAs, performs a financial statement review for Meyer Markets. Charlie, the manager on the
job, learns that Dan, a member of the review team, violated the independence rules. She discloses the violation
to Anthony, her firm's quality control partner, as required under firm policy. Anthony informs the appropriate
persons in the firm. Under the "Breach of an Independence Interpretation" interpretation, what should Anthony
do next?
Request that Charlie and other members of the engagement team reperform all of Dan's audit work.
Write a letter to the AICPA so it can open an ethics investigation into the matter.
Evaluate the significance of the breach and its impact on the engagement team's objectivity and
professional skepticism.
Consider whether the firm can take certain actions to address the consequences of the breach.
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