Question

According to the standards of the profession, which of the following circumstances will prevent a CPA who is performing audit engagements from being independent? O A. Acting as an honorary trustee for a not-for-profit organization's client. O B. Litigation with a client relating to billing for consulting services O c. Obtaining a collateralized automobile loan from a financial institution client. OD. Barbara Beck is a senior with Sloan and Sloan CPA and works on Fidelity Investments' audit. She owns $250 in a Fidelity Investments' mutual fund.

Answer 1

the answer is B. Litigation with a client relating to billing for consulting services.

Although had it been for an amount which is immaterial, then the same would not have been considered. Like in point D, considering the amount as immaterial, the independence wont be impacted by that