On June 1,2003 a CPA obtained a $100,000 personal loan from a bank client for whom CPA proved compilation services. the loan was fully secured & considered material to the CPA's net worth.He repaid the loan fully on Dec 31,2004.On april3,204, the client asked the CPA to audit the client's fin stt.for the yr ended Dec 31,2004.Is the CPA considered independent wrt the audit as of Dec 31,2004 fin stt.
a. Yes, bcoz loan is fully secured
b. Yes, bcoz the CPA was not reqd to be independent at the time loan was granted
c. No, bcoz the CPA had a loan wid the client during the period of professional engagement
d. No, bcoz the CPA had a loan wid the client during the period covered by the fin stst.
Ans. b is correct.but the expln says Independence is not reqd for compilation services
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