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The SEC has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or
The SEC has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or group of clients because the SEC staff believes this situation causes CPA firms to
1 Profit excessively from a client or group of clients.
2Depend too heavily on the fees generated by the client or clients.
3 Have a mutuality of interests with the client or group of clients.
4 Place too heavy a burden on the clients financial position.
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