1) Jefery , the current senior manager On the audit of ABCD LIMITEd which spelicializes in the production of mining equipment, has just entered into a business venture (BS Motors) with the CFO of ABCD ltd, whereby they are both equal partners in a business relating motor vehicles. Jefery has informed you that this is nOT a problem since the 2 entities ABCD Ltd and BS Motors are in different non-competing industries.

2) Carol Machineries Limited(CML) has been an audit client of AwC since the past 2 years. AwC has recently completed a review of internal control for CML. AwC has been requested by CML to take responsibility to implement a new software system that will form a significant part of internal controls over CML's financial reporting process and run a three training session for its accounting staff

required:

For each on the independence situations above and using the conceptual framework in APES (Codes of ethics for professional Accountant ) answer

1. identify potential threat(s) to independence and recommend safeguards (if any) to reduce the independence threat(s) identified.
2. provide and objective assessment of whether audit independence can be achieved.