Final answer:
The correct answer to which nonaudit service identified by the SEC generally does not impair an auditor's independence is D. Some specific tax services. The SEC recognizes that not all tax-related services compromise auditor independence.
Step-by-step explanation:
The subject of this question is auditor independence, particularly in the context of nonaudit services identified by the SEC (Securities and Exchange Commission) that can impair an auditor's independence. The correct answer to the student's question is D. Some specific tax services. The SEC does not regard all tax services as impairing independence; rather, it acknowledges that some specific tax services may not have the effect of compromising independence, depending on the circumstances under which the services are provided.
However, services in information systems design and implementation, human resources, and management functions are generally viewed as impairing an auditor's independence because they can create conflicts of interest or blur the lines between the auditor’s role and that of management.The correct answer is E. All of the above are seen by the SEC as impairing independence. Nonaudit services that impair an auditor's independence are those that involve providing management functions or making decisions on behalf of the client. This includes activities like information systems design and implementation, human resource services, and some specific tax services. The SEC considers these services to potentially compromise an auditor's objectivity and independence.