Gracy, a member, is an audit manager with the firm of Gracy \& Sogard, CPAs. The firm is engaged to prepare audited financial statements for Haber Machines for the year ended December 31, 20X4. Gracy's spouse Sandra works as the executive assistant to the CEO of Haber Machines. Sandra participates in Haber's defined contribution pension plan and has a direct financial interest in the company. Which of the following is TRUE about Gracy \& Sogard's independence on the Haber Machines audit engagement? I. Independence is impaired in all cases. II. If Gracy does not participate in the attest engagement and is not in a position to influence the attest engagement, independence is not impaired. III. If Sandra's investment is an unavoidable consequence of her participation in the plan, independence is not impaired. I only II only II and