Winn Palfrey, a member, provides bookkeeping services for Giant Construction, a sole owner company with $10$ employees. On a monthly basis the owner sends Palfrey copies of check stubs and bank statements so Palfrey can reconcile Giant's bank account and maintain the company's general ledger. At the end of the year,

Palfrey prepares a trial balance based on the company's general ledger balances and uses that trial balance to prepare Giant's required business tax returns. Palfrey also prepares the owner's personal tax returns.

Which of the following, as they relate to the services provided by Palfrey to Giant, is TRUE of this scenario?

I. Preparation of the monthly bank reconciliation that identifies reconciling items that are not discussed or evaluated by the client would impair Palfrey's independence.

II$.$ Coding checks that were not coded by the client and posting them to the company's general ledger without discussing or obtaining approval for the account coding from the client would impair Palfrey's independence.

Ill. This is a relatively common situation encountered when providing bookkeeping services to clients, so nothing in the Palfrey$/$Giant scenario would impair Palfrey's independence.

$0$ lonly Q land Ill Q land II

$0$ lllonly