According to AICPA standards, which of the following situations will compromise the independence of the CPA performing an audit?
A. Acting as an executor of an estate that had an immaterial indirect financial interest in the client.
B. Receving a private loan from a hedge fund manager who owns 9% of the outstanding shares of the client company.
C. Owning 9% of a client’s outstanding shares.
D. Refinancning an automobile loan from a bank client.
Answer:C
According to AICPA standards, which of the following situations will compromise the independence of the CPA performing an audit?
A. Acting as an executor of an estate that had an immaterial indirect financial interest in the client. B. Receving a private loan from a hedge fund manager who owns 9% of the outstanding shares of the client company. C. Owning 9% of a client’s outstanding shares. D. Refinancning an automobile loan from a bank client.