In which of the following situations would a 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 nonprofit audit client.

Question

Quizplus · Accepted Answer

Serving in an honorary and non-participating role as a director for a nonprofit audit client would not create a significant threat to independence, therefore the PA would still be considered independent. Choices A, B, and C would all create threats to independence and potentially result in a lack of independence.

In Which of the Following Situations Would a PA Still