Maureen, a covered member, prepared the financial statements for Cyprus Productions, Inc. for the year ended December $31,20$X$5.$ On

May $1,20$X$7,$ First Bank filed a third$-$party lawsuit against Maureen, alleging reliance on the financial statements of Cyprus $($with which

Maureen is associated$)$ as a basis for extending credit to the company.

Which of the following is TRUE regarding Maureen's independence to Cyprus?

Independence is always impaired between the covered member $($defendant$)$ and the client in these situations.

If the client is not a party to the lawsuit, independence is not normally impaired.

Independence is never impaired between the covered member $($defendant$)$ and the client in these situations.

If the covered member, in their defense, alleges fraud or deceit by the present management of the company, independence is not impaired.