Rocky Point Brewery(RPB) filed an initial public offering in January 2016. RPB engaged Olsen & Alain, CPAS(O&A) in 2013 to keep the books and prepare monthly and annual financial statements(while the company was privately held), and terminated those services in December 2015. Under SEC and PCAOB rules, could RPB engage O&A to be their auditors now that it is a public company?

1) Yes, because prohibited nonaudit services were performed before the period of professional engagement.

2) Yes, but only if O&A rescinds any indemnication language existing in their nonaudit engagement letters

3) No, because the prohibited nonaudit services were performed during the period covered by the financial statements.

4) No, but only if the fees O&A received from these engagements exceeded 5% of the firms annual revenue.

Members should use the AICPA conceptual framework for independence to:

1) Come to different conclusions than the Interpretations of the Code of Professional Conduct.

2) Evaluate independence matters not addressed in the Code of Professional Conduct.

3) Understand the rules on confidential client information and acts discreditable to the profession.

4) More easily interpret conflicts of interest and subordination of judgment by a member.