The clentele of Black &Company's audit practice consists primarily of privately owned midle market companies subject to AICPA independence rules only. Recently, the firm won the audit of Bee Corp. a smallpublic company. From an independence perspective,what impact will the audit of Bee Corp, have on Black & Company?

Black &Co.will have to comply with more restrictive SEC and PCAOB independence rules when providing nonaudit services to Bee Corp Black & Co. will have to request permission from the SEC to perform nonaudit services for Bee Corp Black &Co.will have to apply the conceptual framework approach when it considers providing new nonaudit services to Bee Corp. Black&Co.will need an annual peer review that specifically evaluates its compliance with SEC independence rules.