In which of the following situations would a CPA not be considered independent?
A)A CPA has obtained an auto loan from a banking client in a prior year.
B)A CPA has obtained a home mortgage loan in 1988 from a client.
C)A CPA has obtained a $4,500 cash advance from a banking client in the current year.
D)A CPA has obtained a $6,500 cash advance from a client in the current year.

Question

Quizplus · Accepted Answer

A CPA would not be considered independent if they have obtained a cash advance over $10,000 from a client. However, the threshold for independence issues can vary, and obtaining a cash advance from a client can impair independence depending on the circumstances and the amount. In this case, option D is the most likely to impair independence due to the amount and timing.

In Which of the Following Situations Would a CPA Not