Write answers to each of the five (5) situations described belowaddressing the required criteria (i.e. 1 & 2) in eachindependent case. You may use a tabulated format if helpful having“Threats”, “Safeguards” and “Objective Assessment” as columnheadings.  
Bret Hart has been appointed as a junior auditor of Black &White (BW). One of his first tasks is to review the firm’s auditclients to ensure that independence requirements of APES 110 (Codeof Ethics for Professional Accountants) are being met. His reviewhas revealed the following:

(c) BW has recently been approached by Pixcom Limited (PL) toconduct its audit. The accountant at PL, Charlotte Flair, is thedaughter of Ric Flair, who is one of the audit partners at BW.Being aware of Ric’s relationship with Charlotte, BW will not beassigning Ric to the audit team of PL.

(d) Jack, the current senior manager on the audit of Burj Steel(BS) Limited which specializes in the production of miningequipment, has just entered into a business venture (ZZ Motors)with the CFO of BS Ltd, whereby they are both equal partners in abusiness retailing motor vehicles. Jack has informed you that thisis not a problem since the 2 entities (BS Ltd and ZZ Motors) are indifferent non-competing industries.   

(e) Awesome Machineries Limited (AML) has been an audit client ofBW since the past two years. BW has recently completed a review ofinternal controls for AML. BW has been requested by AML to takeresponsibility to implement a new software system that will form asignificant part of internal controls over AML’s financialreporting process and run a three hour training session for itsaccounting staff.

Required:

For each of the independent situations above, and using theconceptual framework in APES 110 (Code of Ethics for ProfessionalAccountants), answer the following questions:

1. Identify potential threat(s) to independence & recommendsafeguards (if any) to reduce the independence threat(s)identified.

2. Provide an objective assessment of whether audit independencecan be achieved