Question $25$

Perry Pinkney, CPA, is one of the general partners in a partnership $($Pinkney & Larry, LLP$),$ which in turn

invested $90$ percent of its assets in the common stocks of Pinkney's audit client $($Darby Corporation$).$

According to the AICPA Code of Professional Conduct, Pinkney is considered to have

violated the AICPA Independence Rule if Pinkney & Larry, LLP has a controlling interest in Darby

Corporation.

violated the AICPA Independence Rule.

violated the AICPA Independence Rule if Pinkney & Larry, LLP makes a profit from the investment in

Darby Corporation.

not violated the AICPA Independence Rule.