Janet the CPA is a Partner in a CPA firm, with enough influence to fire anyone in the firm should she choose to do so. The CPA firm does financial statement attest engagements for King Resources and Fund of Funds. Janet has lunch with the CEOs of both companies weekly; the lunches last at least 1 hour, and usually covers some discussion of business for the parties; Janet is not on the attest engagement team. One of the companies is defrauding the other. Janet feels she cannot disclose information regarding the defrauding to the other company, as that is a violation of confidential client information; Janet therefore continues to allow her firm to continue attesting to the validity of the financial statements.

Part A Under this fact pattern, Janet is clearly WHAT defined term, that is most relevant to her relation to the two attest clients? (Janet is a _______, even though she is not on the attest engagement team, and because Janet is a ________ she must maintain independence from the two clients.) Janet fits this defined term very wellthere are at least 2 ways (if not more) that causes her to fit. Please give any element' or 'definition' of the defined term that causes Janet to have that defined-term Status.

Part B Janet's independence is threatened here in various ways. Name any threat which applies to Janet, and explain a safe guard Janet can do to reduce this threat to an acceptable level.

Part C Janet's feelingthat she cannot disclose Client A defrauding Client Bhow well does that work as a defense? Why or why does it not work?