A CPA is performing an audit of a county government entity that receives federal financial assistance. The audit is conducted in accordance with GAO Government Auditing Standards (the Yellow Book). The CPA also provides non-audit services to the county, specifically assisting in drafting the financial statements based on the trial balance provided by management. Which of the following is the auditor's responsibility regarding independence?

Independence is automatically impaired because drafting financial statements is a management responsibility.

The auditor must document the assessment that the non-audit service does not create a significant threat to independence and ensure management oversees the service.

The auditor is not required to document independence considerations for routine non-audit services like drafting statements.

Independence is impaired unless the auditor uses a separate engagement team for the non-audit services.