CASE: (Auditor's Independence) The firm of Ermita and Regencia, CPAs, has been asked to perform audit services for Promenade Corporation ( a nonpublic company) for the year ended December 31, 2021. Ermita and Regencia has two offices: one in Samar and the other in Leyte. Promenade would be audited by the Samar Office. For each of the following independent cases, indicate whether Ermita and Regencia would be independent with respect to Promenade and explain why. A. A partner in the Samar office of Ermita and Regencia has been a long-time personal friend of the chief executive officer of Promenade. B. The former controller of Promenade became a partner in the Leyte Office of Ermita and Regencia on March 15, 2021, resigning from Promenade on that date. C. A manager in the Leyte office of Ermita and Regencia is the son of the treasurer of Promenade. D. A partner in the Leyte office of Ermita and Regencia jointly owns a cattle ranch in Baguio with one of the directors of Promenade. The value of the investment is material to both parties. E. Promenade has not yet paid Ermita and Regencia for professional services rendered in 2020. This fee is substantial in amount and is now 15 months past due.

REQUIRED: Case analysis of the scenarios above.