On June $1,$ Year $1,$ a CPA obtained a $$100,000$ personal loan from a financial institusion elient for whom the CPA provided correllation vervices. The loan was fully secured and considered material to the CFAS net worth. The CPA paid the loan in ended December $31,$ Year $2.$ Is the CPA considered independent with respect se the audi of the dienci December $31,$ Year $2,$ finandial statements?

Ven hersesse the loas was fllly secured.

No$,$ because the CPA had a loan with the client during the period covered by se fluancial sulterrests.

engagement.

Tel, because the CPA was not required to tee independent at the time the loun was granted.