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Olsen & Alain, CPAs (O&A) performed the audit of Rocky Point Brewery (RPB), a public...

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Accounting

Olsen & Alain, CPAs (O&A) performed the audit of Rocky Point Brewery (RPB), a public company in 20X1 and 20X2. In 20X2, O&A also performed internal audit outsourcing related to RPB's internal accounting controls. Which statement best describes how the internal audit services affected O&A's independence in 20X2 under SEC independence rules?
O&A was independent because more auditing is always beneficial to a company.
O&A was independent if the fee for the internal audit services did not exceed 5% of its revenues.
O&A was not independent due to self-audit and management participation concerns.
O&A was not independent unless management approved its internal audit services.

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