Jane, a partner in a cpa firm, borrows $100,000 on a secured note from one of the firm's bank audit clients to build a new dormer on her house. the amount of the loan is material to jane. jane will not provide any services to the bank and she is unable to influence the engagement. jane practices in the same office as the lead partner on the bank's audit. is jane's independence impaired under the aicpa code?

No, because Jane is not able to influence the engagement or on the attest team. According to Interpretation 101-1, the independence is not impaired except the manager falls within the description of a "covered member" in ET section 92.06. Jane in general would not be well-thought-out a covered member since she is not on the attest engagement team and does not be responsible for non-attest services to the client.