In which of the following circumstances would a covered member's independence be impaired with respect to a nonissuer client?
a. The member is designated to serve as guardian of a friend's children if the need arises, and the friend's estate, which would be held in trust for the children, holds significant stock ownership in a client entity.
b. The member's spouse qualifies because of geographical residence to belong to a client's credit union, and all transactions with the credit union are conducted under normal operating practices.
c. The member owns municipal utility bonds issued by a client, and the bonds are not material to the member's wealth.
d. The member belongs to a client golf club that requires members to acquire a share of the club's debt securities.
Answer: C
CPA Exam
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