My homework question involves this section in explaining the situation:

Tammy Potter, a new partner with the regional CPA firm of Tower & Tower, was recently appointed to the board of directors of a local civic organization. The chairman of the board of the civic organization is Lewis Edmond, who is also the owner of a real estate development firm, Tierra Corporation.

Potter was quite excited when Edmond indicated that his corporation needed an audit and he wished to discuss the matter with her.

After more details on Edmonds company are presented in the problem, I am asked for reasons why or why not Potter should accept the engagement for audit. My thought is that it's a conflict of interest for Potter to be involved in auditing Edmond's business because they are on the same board of directors in the local civic organization - that the secondary relationship could taint or potentially make Potter's audit/opinion biased (impairing her independence). Is this accurate?