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Question - Kai & Chung, CPA's has thirty professional staff and ten administrative staff, including bookkeepers. The firm specializes in audits of financial institutions and has performed these types of audits for over twenty years. Second Ninth Bank is one of the firm's audit clients and, as such, independence must be maintained with respect to the bank. Which of the following new loans or leases would be permitted if independence is to be maintained?
a) Loans obtained under a special arrangement between Kai & Chang, CPA's and Second Ninth Bank.
b) Unsecured lines of credit obtained under the institution's normal lending procedures, terms, and requirements.
c) Passbook loans obtained under the institution's normal lending procedures, terms, and requirements.
d) None of the above
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