In which of the following situations would a CPA not be considered independent?
A)where a CPA has obtained an auto loan from a banking client in the current year.
B)where a CPA has obtained an automobile lease term from a client in the current year.
C)where a CPA has obtained a $4,000 retainer for services from a banking client in the current year.
D)where a CPA has obtained a home mortgage loan from a client in the current year.

Question

Quizplus · Accepted Answer

According to the AICPA Code of Professional Conduct, a CPA would not be considered independent if they have a financial interest, such as a loan or mortgage, with a client. Therefore, obtaining a home mortgage loan from a client would impair the CPA's independence. Choices A, B, and C do not involve a financial interest and would not affect the CPA's independence.

In Which of the Following Situations Would a CPA Not