Patti Mayo is an audit manager at SM Partners, LLP$.$ Patti is very active on social media and makes several posts per day detailing cutting$-$edge accounting topics, leading her to become an accounting influencer. Recently, Doug Funnie, an old friend from college, reached out to her after seeing one of her posts. Doug is the accounting manager at Yancey Enterprises and needs accounting services from an experienced and trustworthy accountant. As a relatively new manager, Patti is excited at the opportunity of bringing new business to the firm, so she sets up a business lunch with Doug to discuss his needs.

At lunch, Doug reveals that Yancey recently fired their external auditor due to disagreements and has seen their stock price fall as a result. Doug is now trying to find a reputable firm to perform the financial statement audit of Yancey. Additionally, due to recent staff shortages, Yancey is also looking to engage the firm to temporarily provide assurance and consulting services to evaluate and improve the effectiveness of risk management, internal controls, and governance processes at Yancey. Patti is intrigued and tells Doug she will bring this proposal to her managing partner.

Required:

Research the appropriate authoritative guidance and address the situation described above. Is SM Partners allowed to provide both requested services to Yancey Enterprises? If not, are there circumstances that would allow it$?$ Explain. Cite the appropriate guidance used to determine your answers and include screenshots in your response. Your written response should be approximately $(1)/(2)-1$ page in length, not including screenshots.

Your response should clearly state the section and paragraph of the authoritative literature where you derived your answer$($s$).$

For example, say a case provided you with a scenario in which a non$-$issuer engaged in related party transactions that were previously undisclosed and the case asked for the responsibilities of the auditor:

example Solution: AICPA Clarified Statement on Auditing Standard: AU$-$C $550\mathrm{.}25.$