SITUATION #1 FLOYD NATIONAL BANK The rm of Gilmour and Waters, LLC is engaged as a new auditor for Floyd National Bank for the 2010 financial statements. During the audit engagement, the following circumstances were discovered through a quality control review: 0 Roger, the engagement partner assigned to the audit, has had a home mortgage for the last 5 years with Floyd National Bank. 0 While performing field work at Floyd, Roger took out a loan to purchase a new Hummer. The terms of the loan were derived through normal bank procedure and it is a few months past due. The loan is collateralized by Roger's condo. 0 Jackie is a partner in Roger's office. Her husband is the CFO of Floyd National Bank. 0 Taylor, the new staff auditor on the job, has $7,500 in charges outstanding on a Floyd credit card. In this s - ecic situation, who are the covered members? Ta lor R0-er Jackie Is independence comprised by any of the following? If so, could the terms be structured in a manner that does not compromise independence, and if so, what would those Chan es entail? -_