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When considering the independence of a CPA, particularly in relation to loans and financial transactions with clients, the primary concern is that any financial relationship could create a conflict of interest or the appearance of impropriety.

In this scenario, even if the loan is deemed immaterial, it is crucial to recognize that the AICPA's Code of Professional Conduct explicitly states that any loan from a CPA to an officer of a client generally impairs independence. Independence is a core ethical requirement for CPAs, and the existence of a loan, regardless of its size or terms, can compromise the perception of objectivity and impartiality that is essential in conducting audits and other attestation services. The rationale is based on the principle that any direct financial interest in a client could influence the CPA's judgment and, as such, it creates a situation where independence is viewed as impaired.

Other options may suggest conditions under which independence might be preserved if the loan were to be considered immaterial, large, or secured. However, the strict stance is that any loan from a CPA to a client officer inherently raises concerns about independence, thereby leading to the conclusion that such a loan does impair independence, irrespective of its materiality.