Pat Prytain, CPA Is the Auditor of Gross Computers

Essay

Pat Prytain, CPA is the auditor of Gross Computers. Pat has undertaken the following and needs you to comment whether Pat's independence has been undermined.
a. Pat audits Gross Computers even though his grandfather owns 30 percent of the company's stock.
b. Pat's mother-in-law is the chief operating officer of Gross Computers.
c. Pat recommends Gross Computers' service and repair department to his other clients based on his understanding of the quality of these services.
d. Pat helps Gross Computers' by making adjusting entries to correct financial statements for any amount below a pre-established threshold.
e. Pat audits the income tax expense for Gross Computers, which is based on the taxable income computed for Gross Computers by the taxation division of Pat's firm.