CPA's is a large local CPA firm that performs a number of different engagements for its clients including attest engagements. The firm has fifty professional staff, ten administrative staff, and six partners. While surveying its staff to determine if any threats to independence exist, the firm has come upon a number of issues that might threaten their independence with respect to their attest clients. Required:
What situations found through the survey would impair the firm's independence?

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld