In which of the following situations would a CPA be considered independent?
A)A CPA's brother is the Vice-President of Sales at the CPA's audit client.
B)A CPA's father was a salesman at the CPA's audit client,and now a major portion of the father's pension fund is invested in the audit client.
C)A CPA's cousin works as a web-site designer at the audit client.
D)A CPA's son works summers at the audit client and has earned 10 shares of stock in the audit client.

Question

Quizplus · Accepted Answer

The cousin working as a web-site designer does not have a direct financial interest in the audit client and therefore does not create a threat to the CPA's independence. The other options all involve direct financial relationships or family relationships that could impair the CPA's independence.

In Which of the Following Situations Would a CPA Be