American Institute of Certified Public Accountants (AICPA) Practice Exam

Independence is a crucial concept in accounting, particularly for auditors and other professionals, as it ensures that their judgment is not compromised by personal relationships or conflicts of interest. Serving as a director for a local nonprofit does not impair independence because the role typically involves oversight or governance that is not financially motivated. Nonprofits are often oriented toward community service, and holding a position on a nonprofit board can demonstrate a commitment to giving back rather than creating a financial or personal interest conflict.

On the other hand, having unpaid fees for previous services can lead to a perception of dependence on a client for payment, potentially compromising objectivity. Performing public polling for clients can also blur the lines of impartiality, especially if the results may benefit the client directly. Lastly, working as a financial analyst for a client creates an employment relationship that inherently compromises independence due to the vested interest in the client's financial outcomes. Thus, serving on a nonprofit board does not introduce the same level of conflict and allows for the maintenance of professional independence.