The objectivity of the external auditor may be threatened or appear to be threatened where:
i) There is undue dependence on any audit client or group of clients.
ii) The firm, its partners or staff have any financial interest in an audit client.
iii) There are family or other close personal or business relationships between the firm, its partners or staff and the audit client.
iv) The firm provides other services to audit clients.

(a) For each of the four examples given above, explain why the objectivity of the external auditor may be threatened, or appear to be threatened, and why the threat is important.
(b) Describe the ethical requirements that reduce the threats to auditor objectivity for each of the four examples given above.