[michaelyau]

The interpretation states that covered member will not be independent if loaned from a bank institution unless it’s signed at a normal term, or it’s taken a collateral/secured loan and it’s obtained before the engagement occurs.
My question is how this will affect an Other Partner in Office <<OPIO>> (assuming a partner working for the same office as the lead auditor). Is the OPIO’s independence also threatened? If yes, by what basis?

My understanding is that the OPIO’s independence could also be threatened since he’s a Covered member, but he’s safe as the loan is secured and does not take part of the audit.
Is my reasoning correct?

[Anonymous]

“A covered member is

(b) An individual in a position to influence the attest engagement;
(c) A partner or manager who provides nonattest services to the attest client”

So I'd say no, simply being an OPIO wouldn't impair independence.

[Author]

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