In Which of the Following Circumstances Would a CPA Who

Multiple Choice

In which of the following circumstances would a CPA who audits XZ Corporation lack independence?

A) The CPA and XZ's president are both on the board of directors of COD Corporation.
B) Both the CPA and XZ's president own 25 percent of FOB Corporation, a closely held company.
C) The CPA has an automobile loan from XZ, a financial institution. The loan is collateralized by the automobile.
D) The CPA reduced XZ's usual audit fee by 40 percent prior to the audit because XZ's financial condition was unfavorable.