Had this on my final exam for my audit class in school, but haven't seen it in review (never got the exam answers) -
For audit services, independence is impaired when the client hasn't paid their audit fees in over a year from the last report date and when there is litigation between the audit firm and client.
But my question is for auditor independence with other services like pre-approved tax services or non-audit services that are immaterial (less than 5%):
Is auditor independence impaired if their tax department hasn't received tax fees in over a year from the same client or the firm's tax department is being sued by the same client?