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The firm of Sun & Brinkley, CPAs, has been asked to perform attest services for Star Corporation (a nonpublic company) for the year ended December

The firm of Sun & Brinkley, CPAs, has been asked to perform attest services for Star Corporation (a nonpublic company) for the year ended December 31, 20X9. Sun & Brinkley has two offices: one in Wilmington and the other in Charlotte. Star Corporation would be audited by the Wilmington office. For each of the following cases, indicate whether or not Sun & Brinkleys (the firms) independence is definitely impaired. If it is not definitely impaired, but might be under some circumstances, discuss those circumstances.

  1. A partner in the Wilmington office of Sun & Brinkley has been a long-time personal friend of the chief executive officer of Star Corporation.
  1. The former controller of Star Corporation became a partner in the Charlotte office of Sun & Brinkley on March 15, 20X7, resigning from Star Corporation on that date.
  1. A manager in the Charlotte office of Sun & Brinkley is the son of the treasurer of Star Corporation.
  1. A partner in the Wilmington office of Sun & Brinkley jointly owns a cattle ranch in Montana with one of the directors of Star Corporation. The value of the investment is material to both parties.
  1. Star Corporation has not yet paid Sun & Brinkley for professional services rendered in 20X6. This fee is substantial in amount and is now 15 months past due.

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