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Becker & Smith, CPAs, performs a financial statement review for BAM Markets (BAM). Caroline, the manager on the job, learns that Don, a member of
Becker & Smith, CPAs, performs a financial statement review for BAM Markets (BAM). Caroline, the manager on the job, learns that Don, a member of the review team, violated the independence rules. She discloses the violation to Dario, her firm's quality control partner as required under firm policy. Dario informs the appropriate persons in the firm. Under Breach of an Independence interpretation, what should Dario do next?
- Request that Caroline and other members of the engagement team reperform all of Don'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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