The fact that goodbread owned stock in Koger, no matter how many shares, still affects the appearance of his independence relating to the audit of that company. Third parties, such as potential buyers of Koger stock, cannot observe whether goodbread is acting objectively during the audit. Because of that, it will lead to questions about whether goodbread is really independent due to his partial ownership in Koger properties. After evaluating the codes and standards set before auditors in regads to independence, it is not hard to see why the SEC took action against Michael goodbread.