You are a partner-in-charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firms independence. Neither of these situations has been specifically answered by the AICPA Professional Ethics Division. Therefore, you must reach your own conclusions as to what to advise your staff members, and what actions, if any, are to be taken by the firm.

Mary Reed, a new staff auditor with the firm, has recently separated from her husband. Mary has filed for divorce, but the divorce cannot become final for at least five months. The property settlement is being bitterly contested. Marys husband has always resented her professional career and has just used community property to acquire one share of common stock in each of the publicly owned companies audited by the office in which Mary works.

• Set forth arguments indicating that the firm's independence has not been impaired
• Set forth arguments indicating that the firm's independence has been impaired
• Express your personal opinion (there is no right or wrong response). Identify those arguments from above that your found most persuasive. If you believe that the firm's independence has been impaired, make suggestions about how the problem might be resolved.