Pat is the partner on the audit of Hardwood Emporium Ltd. Comment on whether or not, and why, each of the following may be a threat to Pat’s independence. 

1. Pat and the chief financial officer of Hardwood Emporium play golf together every few weeks. 

2. During the audit, Pat notices that the company has a serious problem with its computer system. Pat’s accounting firm is then hired by Hardwood Emporium to do a major redesign of the system, for a large fee. 

3. As part of the completion of the audit, Pat works with the company to determine its likely income tax liability for the year, including helping to prepare the company’s income tax returns. Pat bills the company for the tax advice separately from the audit fee. 

4. Pat’s former assistant on the Hardwood Emporium audit is hired by the company as the chief financial accountant, who is responsible for preparing all the company’s financial statements. 

5. Pat is asked to submit a bid on the audit fee for next year’s Hardwood Emporium audit, in competition with several other accounting firms. Pat decides to submit a very low bid because the revenue from tax and consulting services would make up for the lower audit revenue.