Corp., a small public company, merged with a privately held audit client of Black &

Company (Black). Bee wants Black to audit the combined company. From an

independence perspective, what impact will this development have on Black?

a. Black will need to request permission from the SEC to perform nonaudit

services for the combined company.

b. Black will need to comply with more restrictive SEC independence rules

with respect to the combined company.

c. Black will need to apply the conceptual framework approach when it

considers providing nonaudit services to the combined company.

d. Black will need to have a biannual peer review performed to evaluate its

compliance with SEC independence rules,