Which of the following statements is true relating to business relationships? Direct or material indirect business relationships - other than a consumer in the normal course of business - with an SEC audit client will impair firm's independence. Direct business relationships where the firm is a reseller of an SEC audit client's product will NOT impair the firm's independence. Material indirect business relationships where the firm purchases an SEC audit client's product through a distributer and then the firm resells that product to third- parties will NOT impair the firm's independence. Direct business relationships such as an alliance agreement with an SEC audit client will NOT impair the firm's independence. Which of the following are true statements that both audit and non-audit engagement teams should consider to mitigate firm risk as they evaluate a new client opportunity? Select two. Teams should initiate a check early, for example during the proposal process. Perform a check via the Relationship Checking System only if the prospect is a non-audit client. Initiate a check via the Relationship Checking System for all prospects whether the engagement is for audit or non-audit. Evaluate and clear all relationships reported in the Relationship Checking System after client acceptance has been approved for the client. What services are permitted under AIPCA rules for a private audit client or its downstream affiliates? Select the two answers that apply Performing implementation assistance with the installation or upgrade of a financial reporting system that is an "off-the-shelf" system as long as management takes responsibility for our work and makes all decisions, including inputs and assumptions and project management oversight. Developing code for the client's financial information system to capture information necessary for preparing the client's financial statements or disclosures. Assisting in drafting their financial statements because management does not have anyone with the suitable skills, knowledge and experience to perform or oversee these activities. Assisting with accounting advisory support services, which may include preparing checklists that management would be responsible for reviewing and approving. Certain IPO readiness services may be permissible for SEC audit clients and its downward affiliates as long as which of the following is true? We prepare the accounting memos for accounting issues, so we will know they are accurate. We are not performing management responsibilities, or our work is not subject to audit. We prioritize our recommendations or findings and inform the company which ones they need to implement. We document the company's controls or processes around financial reporting, including internal controls