Petersen & Benez, CPAs, performed the audit of Titan Brewery, a public company, in $20$X$1$ and $20$X$2.$ In $20$X$2,$ Petersen & Benez also performed internal audit outsourcing related to Titan's control over its accounting system. Which statement best describes how the internal audit services affected Petersen & Benez's independence in $20$X$2$ under SEC independence rules?

O Petersen & Benez was not independent unless management approved its internal audit services.

O Petersen & Benez was independent because more auditing is always beneficial to a company.

O Petersen & Benez was not independent due to self$-$audit and management participation concerns.

O Petersen & Benez was independent if the fee for the internal audit services did not exceed $5\%$ of its revenues.