What must be true for an audit engagement to proceed when a member has relatives involved with the client?

The correct answer emphasizes that all related parties must be free of influence on the client for the audit engagement to proceed. This is grounded in the fundamental principles of independence that CPAs must adhere to when conducting audits. Independence is a cornerstone of audit quality, and ensuring that relatives are not in a position to influence the client helps maintain that independence.

When relatives of a CPA are involved with the client—whether as employees, board members, or in other significant roles—the potential for conflicts of interest arises. This can compromise the auditor's impartiality and the credibility of the audit. Thus, it is critical that any relatives involved do not exert influence over the client’s decisions or operations. This safeguard protects the integrity of the audit process and the trust of the stakeholders.

Considering the other options, they lack the comprehensive nature required to maintain independence. For instance, merely having one relative be independent does not ensure that another relative does not exert influence. Similarly, not being involved in the engagement does not address the larger issue of the relatives' influence on the client, and stating that independence requirements do not apply to relatives contradicts the ethical standards set forth by regulatory bodies. Ensuring that all related parties are free from influence encapsulates the essence of maintaining an auditor’s