An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA.

Question

Quizplus · Accepted Answer

According to the AICPA Code of Professional Conduct, an immaterial loan from the CPA to an officer of a client can impair the CPA's independence. This is because the loan creates a financial interest between the CPA and the client, which may result in a conflict of interest and compromise the CPA's ability to provide objective and unbiased services.

An Immaterial Loan from the CPA to an Officer of a Client