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Which statement best explains why the SEC has concerns about the independence of an audit firm that derives a significant portion of its total revenues

Which statement best explains why the SEC has concerns about the independence of an audit firm that derives a significant portion of its total revenues from a single audit client?

  • The firm may act as management or an employee of the audit client. The firm may depend too heavily on the fees generated by the client.
  • The firm may have a conflicting interest with the audit client.

O The firm may be overly skeptical about the client's financial position.

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