In which of the following instances would impair a CPA's independence when they have been retained as the auditor?
I. A charitable organization where the CPA serves as treasurer.
II. A municipality where the CPA owns $250,000 of the $25 million outstanding bonds of the municipality.
III. A company that the CPA's investment club has a one-tenth investment interest.

Question

Quizplus · Accepted Answer

Serving as a treasurer (I), owning a significant amount of bonds (II), and having an investment interest through a club (III) all create potential conflicts of interest that impair a CPA's independence.

In Which of the Following Instances Would Impair a CPA's