Chad, Serena, and Lavone are CPAs and members of a team that will be providing audit services to Celeon Industries, a public company. The three CPAs are attending a planning meeting with the department managers of Celeon. When they arrive at the meeting, Chad is surprised to see a familiar face among the department managers. Karena, the asset control manager for Celeon, was at a birthday celebration that Chad attended last weekend for Paloma, the managing director of the firm Chad works for. Chad doesn't recall Serena or Lavone being at the birthday party, so it is unlikely they would recognize Karena. Chad and Karena talked quite a lot at the party, so he is confused when Karena acts as if she doesn't recognize him. This unexpected situation has Chad questioning the independence rule and wondering if there may be a covered member relationship that he should be concerned about. Explain whether there is cause for Chad to be concerned about a covered member relationship or impaired independence.