Julie Webb,CPA,takes Out an Automobile Loan with First National Bank

question 77

Multiple Choice

Julie Webb,CPA,takes out an automobile loan with First National Bank of Wellville (FNBW) while attending the University of Wellville.Julie graduates one year later and is hired as an auditor by Best and Driftwood,LLP.Her first assigned audit engagement is with First National Bank of Wellville,a client of Best and Driftwood.As a new audit assistant,Julie continues to pay her automobile loan payments each month.Which of the following best describes Julie's independence status?

• A)Impaired because Julie has a direct financial interest in FNBW.
• B)Impaired because Julie has a material indirect financial interest in FNBW.
• C)Not impaired because Julie has an immaterial indirect financial interest in FNBW.
• D)Not impaired because Julie is permitted to take normal loans from FNBW.

---

Definitions:

Solid-State

Refers to electronic devices that use solid-state electronics, such as semiconductors, for storage or operation, contrasted with mechanical devices.

Flash

In technology, this often refers to a storage medium known for its fast access speeds and durability, commonly used in USB drives and solid-state drives.

Wireless Communication

The transfer of information or power between two or more points that are not connected by an electrical conductor, using electromagnetic waves.

Airplane Mode

Enables users to disable all wireless communication but still view a movie or play a game that does not require Internet connectivity.