American Institute of Certified Public Accountants (AICPA) Practice Exam

The acceptance of a token gift from a client does not impair a CPA's independence because such gifts are typically considered to be of low value and do not create a significant threat to the objectivity and impartiality required of a CPA in their professional duties. The AICPA's Code of Professional Conduct recognizes that small, itemized gifts may be accepted without compromising independence, as they are usually not substantial enough to influence a CPA's judgment or actions in carrying out their professional responsibilities.

In the context of this framework, higher-value gifts could present a different scenario, leading to potential conflicts of interest. However, token gifts, which are generally seen as nominal in value, fall within permissible boundaries, allowing CPAs to maintain their independence while fostering client relationships.

Regarding other options, there are provisions within professional ethics that clearly delineate between what constitutes a token gift and what would be considered a more significant gift that could raise concerns about independence. The stipulation that independence may be impaired only for gifts over a certain value underscores the need for materiality considerations but is not applicable here since the term "token" indicates a nominal value. Finally, the setting in which a gift is accepted does not inherently affect the principle of independence, as the nature of the gift and its