A CPA firm is auditing a large public company. The audit partner's spouse has just been promoted to a new role at the audit client. Under which of the following scenarios would the firm's independence be considered IMPAIRED according to AICPA and PCAOB independence rules?

Under AICPA and PCAOB rules, independence is impaired if an immediate family member (spouse, spousal equivalent, or dependent) is employed by the audit client in a key position. A key position includes roles with primary responsibility for significant accounting functions, preparation of financial statements, or the ability to exercise influence over the contents of the financial statements (e.g., Director of Internal Audit).