a) Discuss the relationship between the auditors independence (of mind and in appearance) and the credibility and reliability of audited financial reports.

b) Your long-term client, WoW Co., is a listed company. WoW is happy with the quality of the audit staff and has recently offered the role of Finance Director to the audit team senior, Jen Brown. Jen accepted the offer and will be starting her new role before the year-end audit visit. Before leaving the firm, Jen has decided to take the audit team out for dinner to say goodbye and thank the team members for their work over the last five years.

i) Identify and explain ONE possible threat to audit independence and its potential breach of ethical principles. ii) Suggest ONE safeguard that could mitigate the threat to an acceptable level.