A CPA firm has multiple locations throughout the Midwest of the United States.This firm has an audit client that is headquartered in Milwaukee,Wisconsin and the partner in charge of this audit is also located in the Milwaukee office of the firm.The audit client is a beverage manufacturer and the partner in charge of this audit is the Chairman of the firm's Food and Beverage Industry Audit Committee.To preserve the CPA firm's independence,which of the following individuals definitely must not own any direct interests in this beverage manufacturer?

Question

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According to the AICPA Code of Professional Conduct, "Partners or professional staff members in the office of the partner responsible for an audit engagement and partners or professional staff members who participate in or can influence the outcome of the audit or other attestation engagement team must not have a direct financial interest in an attest client." Therefore, option C is not allowed to own any direct interest in the beverage manufacturer as he/she serves on the firm's Food and Beverage Industry Audit Committee. Option A is the aunt of the partner in charge and isn't involved in the audit. Option B is a partner from another office who doesn't work for this client, so he/she is allowed to own a direct interest in the beverage manufacturer. Option D is a junior staff member who only worked on a tax research memorandum, and his/her ownership of a direct interest in the beverage manufacturer wouldn't harm the CPA firm's independence.

A CPA Firm Has Multiple Locations Throughout the Midwest of the United