Question
Need help with this multiple choice question below. Please provide the correct answer and explain why. Freeman, managing partner of the Freeman & Co., LLP,
Need help with this multiple choice question below. Please provide the correct answer and explain why.
Freeman, managing partner of the Freeman & Co., LLP, public accounting firm has been asked to become an honorary member of the board of directors of a local charity. The charity has been, and will continue to be, an audit client of Freeman & Co., LLP. His name, along with the names of the other nineteen directors, would be listed on the charity's letterhead under the heading, "Board of Directors." After his name it would say "Honorary Director."The board meets quarterly for lunch and a business meeting. At the meeting they hear reports from committee chairmen and approve the executive committee's actions that have been taken since the last meeting of the board. The executive committee handles the day to day operations.Which of the following statements is correct?
A) Freeman being listed on the charity's letterhead as an honorary director impairs independence with the charity.
B) Freeman voting to approve the actions of the executive committee impairs independence with the charity
C) Both (a) and (b) are incorrect statements.
D) Both (a) and (b) are correct statements.
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