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Robin & Muir, CPAs audit the financial statements of Blue Stone Investments, Inc. As part of their engagement letter agreement, the firm and the client

Robin & Muir, CPAs audit the financial statements of Blue Stone Investments, Inc. As part of their engagement letter agreement, the firm and the client have agreed to use alternative dispute resolution techniques to resolve any disputes relating to the engagement. Currently, there are no disputes between the firm and the client.

Would the agreement to use ADR techniques impair Robin & Muir's independence with respect to Blue Stone?

  1. Yes, this would impair the firm's independence in all cases.
  2. Since this is a pre-dispute agreement, the firm's independence would not be impaired.
  3. ADR techniques are not allowed to be used in engagement letters between a firm and an attest client.
  4. None of the above are correct.

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