Livingston and Associates is a CPA firm in Las Vegas, Nevada and it performs the financial statement audit for Smith Plastics, Inc. For each non-related situation below, determine if each individual represented is independent of Smith Plastics and if Livingston and Associates (the Firm) is independent of Smith Plastics:

A. Sam Livingston, an audit partner, meets Jill Warner, CFO of Smith Plastics after the engagement begins and they fall in love. Sam and Jill marry in Lake Tahoe, California as hort time later. Sam Livingston will not be on the audit engagement team of Smith Plastics.

B. The Firm hires Billy Messer as a staff auditor. Billy is aware that his father has a material investment in Smith Plastics. Billy will not work on the Smith Plastics audit. 

C. Lucy Brown is an audit manager at the Firm. Bob, her high school aged son, owns 1%of the equity of Smith Plastics. The investment is not material to Bob or Lucy's net worth. Lucy is assigned as the audit manager for the Smith Plastics engagement.

D. Smith Plastics has paid all but $5,000 of the previous years audit fees.

E. Julie Simpson, tax partner at the Firm has a 401k plan with multiple securities making up the balance. One of the securities in the plan is that of Smith Plastics which comprises .05% of the total balance of Julie's 401k. Julie does not have a significant portion of her retirement or savings in this particular plan.