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The belief that a former practitioner's financial interest in a client does not affect a CPA firm's independence is grounded in the understanding of independence standards established by regulatory bodies. A CPA firm is generally deemed independent if there are no direct or indirect relationships that could influence the integrity of the audit or professional services.

When a practitioner has left a firm, their financial interest in a client is viewed differently than if they were still actively working with the firm. The reasoning is that the practitioner's separation from the firm mitigates potential biases or conflicts of interest that might arise from their ongoing relationship with the client. The firm can maintain independence as long as the former practitioner's financial interest does not continue to create a perception of compromise or impair the firm's objectivity in providing services to that client.

The factors determining independence primarily revolve around current relationships or financial interests. Since the question pertains specifically to a former practitioner's interest, it highlights the significance of the present state of relationships and interests in determining independence. Therefore, as long as that financial interest is not in violation of the relevant independence rules during the time services are being provided, independence is maintained.