acceptance of Galaxy as a new client, you decided to do some investigation and found the following information:

1. David Jackson, the junior auditor at RSA who is currently in the audit team for Galaxy, owns Galaxy shares worth only $200. However, David claimed that the shares are not material to him.

2. In July 2020, RSA was employed by Galaxy to investigate the value of one of its patents. The patent was acquired following Galaxys acquisition of another glass manufacturer. This patent is considered as material intangible asset to Galaxy.

3. The CFO of Galaxy, Susan White, is a close friend with your wife. They usually go shopping together during weekends. However, you are not very close to Susan.

1. Assume there are threats to auditor independence in the above three situations, please recommend actions that should be taken in relation to each of the situation. Explain your answer. (3 marks)

Situation	Action to reduce risk of threat