In which of the following situations would a public accountant (PA) still be considered independent?
A) The PA received a set of professional-quality, graphite golf clubs from a client as an expression of appreciation for the quality of the work performed.
B) The PA is suing the client for non-payment of fees.
C) The fees from one audit client comprise 65% of the PA's total billings for the year.
D) The PA serves in an honorary and non-participating role as a director for a non-profit audit client.

Question

Quizplus · Accepted Answer

Serving in an honorary and non-participating role as a director for a non-profit audit client does not compromise the PA's independence. However, receiving gifts from clients and having a significant portion of billings from one client could compromise the PA's independence. Suing a client also creates a conflict of interest and compromises independence.

In Which of the Following Situations Would a Public Accountant