Sam and Dave are both audit partners in a medium-size CPA firm. Sam has recently joined the firm from another organization, and is being mentored by Dave, a much more experienced auditor and long-time CPA. One day, Sam and Dave are discussing the concept of covered members, which piques Sam's curiosity. Sam advises that while he understands the lists of who is and who isn't a covered member, he is not sure why only certain people are included and others are not. In answering this question and providing a broader conceptual understanding of what it means to be a covered member, Dave should advise which of the following? As a covered member is considered to generally be anyone who can influence the outcome of an attest engagement or the decisions made during the engagement, a covered member or members of their family are strictly prohibited from holding any direct or indirect interest in an attest client. Covered members can be thought of those people who, during a particular attest engagement, may be placed in a position where they have conflicting interests. When this happens, the covered member may continue working on the engagement but should disclose any potential conflict of interest immediately to avoid litigation. It is important to understand that as a covered member, the CPA is now liable for any and all misstatements contained in the client's financial statements, whether or not they are discovered. Restrictions related to covered members can be thought of as a safeguard to help people in certain positions of potential influence avoid conflicts of interest. This helps to maintain both independence in fact and independence in appearance