Question
Wu, a member, is an audit manager at the firm of Winn & White, CPA's. Wu teaches intermediate accounting at North State University, an audit
Wu, a member, is an audit manager at the firm of Winn & White, CPA's. Wu teaches intermediate accounting at North State University, an audit client of Winn & White, CPA's. Wu is employed by North State University on a part-time non-tenured basis. Wu does not participate in the audit of North State University nor is he in a position to influence the audit in any way. Wu is required to participate in an employee benefit plan sponsored by North State University but does not make any contributions beyond what is required of him. Which of the following statements is true regarding the firm's independence with respect to the audit of North State University as it relates to Wu's teaching position as described?
a) Wu's teaching position as described does not impair the firm's independence. b) Wu's participation in the employee benefit plan will impair the firm's independence. c) Wu's teaching position is not allowed in any capacity if the firm wants to maintain its independence with respect to the audit of North State University. d) None of the above statements is true
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