Which One of the Following Situations Is Most Likely to Impair

Multiple Choice

Which one of the following situations is most likely to impair independence? Legal action is taken by

A) the auditee against the audit firm in relation to taxation services provided.
B) a third party against both the auditee and the audit firm.
C) the auditee against the audit firm claiming deficiencies in the prior year's audit.
D) the auditee against the audit firm in relation to management consulting advice.