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David, a member, is a sole practitioner CPA. Based on the work that David does for Jackson Spine, Inc., he is not independent. Jackson Spine requires audited financial statements for its line of credit with Graymore Bank. The company has hired Hanson & Potter, CPAs to perform the audit and issue the audited statements to the bank. However, Hanson & Potter want to use David on the audit of Jackson Spine because of his experience with the client and his long-term knowledge of their books and records. Would Hanson & Porter's use of David on the audit impair their independence with Jackson Spine? Yes. Hanson & Potter, CPAs is barred by the Code of Professional Conduct from using David on the audit for any purpose. No. As long as Hanson & Potter, CPAS uses David's work in a manner similar to an internal auditor and complies with AICPA Statements on Auditing Standards, their independence would not be impaired. No. David's lack of independence with respect to Jackson Spine, Inc. would not impair Hanson & Potter, CP's independence because David's firm was not the firm engaged to perform the audit and issue the audited financial statements. Yes. David's lack of independence would automatically impair Hanson & Potter, CPAS independence with re- spect to Jackson Spine, Inc.

David, a member, is a sole practitioner CPA. Based on the work that David does for Jackson Spine, Inc., he is not independent. Jackson Spine requires audited financial statements for its line of credit with Graymore Bank. The company has hired Hanson \& Potter, CPAs to perform the audit and issue the audited statements to the bank. However, Hainson \& Potter want to use David on the audit of Jackson Spine because of his experience with the client and his long-term knowledge of their books and records. Would Hanson \& Porter's use of David on the audit impair their independence with Jackson Spine? Yes. Hanson \& Potter, CPAs is barred by the Code of Professional Conduct from using David on the audit for any purpose. No. As long as Hanson \& Potter, CPAs uses David's work in a manner similar to an internal auditor and complies with AICPA Statements on Auditing Standards, their independence would not be impaired. No. David's lack of independence with respect to Jackson Spine, Inc, would not impair Hanson \& Potter, CP's Independence because David's firm was not the firm engaged to perform the audit and issue the audited financial statements. Yes, David's lack of independence would automatically impair Hanson \& Potter, CPAs independence with respect to Jackson Spine, Inc

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