Under the AICPA independence rules, independence can be considered impaired when
A) billed fees remain unpaid for professional services for more than ninety days.
B) a client in bankruptcy has unpaid fees for more than one year.
C) there is litigation by the client related to the auditor's tax or other nonaudit services for an immaterial amount.
D) there is a lawsuit by the client claiming deficiencies in the previous year's audit.

Question

Quizplus · Accepted Answer

The AICPA independence rules state that independence is impaired if there is litigation by the client claiming deficiencies in the previous year's audit. The other options given, such as unpaid fees or litigation related to nonaudit services, do not necessarily impair independence.

Under the AICPA Independence Rules, Independence Can Be Considered Impaired