You are the 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.

For each case, make arguments as to:

1. Why the firms independence has not been impaired 2. Why the firms independence has been impaired 3. What is your personal opinion? How might the potential problem be resolved?

Case 1: Don Jones, a partner in the firm, has recently moved into a townhouse, which he shares with his boyfriend, Bob Turner. Don owns the townhouse and pays all of the expenses relating to its maintenance. Otherwise, the two are self-supporting. Bob is a stockbroker, and recently he has started acquiring shares in one of the audit clients of this office of the CPA firm. The shares are held in Bob Turners name. At present, the shares are not material in relation to Bobs net worth. Case 2: Mary Caplan, a new audit associate with no managerial responsibilities in 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. Mary's 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