In which of the following situations would a covered member's independence be considered to be impaired?
I. The covered member maintains a checking account that is fully insured by a government deposit insurance agency at an audit-client financial institution
II. The covered member has a direct financial interest in an audit client, but the interest is maintained in a blind trust
III. The covered member owns a commercial building and leases it to an audit client. The lease is properly classified as a capital lease, and the rental income is material to the CPA
a. I and II
b. II and III
c. I and III
d. I, II, and III
Ans: b. II and III
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a. true b. false
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