An audit partner of a CPA firm invested in a computer side business with a member of the board of directors of a public company that sells insurance and is an audit client of that CPA firm. Identify any potential problems. Conduct preliminary research to find the relevant source at issue. Refine the problem statement. Research and locate the relevant professional authorities and determine if there is any colorable authority in the law that prohibits such a relationship. If so, try to find the interpretation of the law that the SEC may have issued. Analyze, consider alternatives, and develop the conclusion. Write a research memo on the problem.
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