Mavis, CPA, has audited the financial statements of South Bay Sales Incorporated for several years and had always been paid promptly for services rendered. Last year's audit invoices have not been paid because South Bay is experiencing cash flow difficulties and the current year's audit is scheduled to commence in one week. With respect to the past due audit fees, Mavis should
A. Perform the scheduled audit and allow South Bay to pay when the cash flow difficulties are alleviated.
B. Perform the scheduled audit only after arranging a definite payment schedule and securing notes signed by South Bay.
C. Inform South Bay's management that the past due audit fees are considered an impairment of auditor independence.
D. Inform South Bay's management that the past due audit fees may be considered a loan on which interest must be imputed for financial statement purposes.
C. Inform South Bay's management that the past due audit fees are considered an impairment of auditor independence.
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