B. Apple & Co has been an audit client of your audit firm ANWAR & Co for the last Eight years. The audit staff of ANWAR & Co and the client staff of Apple & Co have always celebrated a meal together at the beginning of the final audit process. The finance director of Apple & Co has suggested this year that both staff can go away for the weekend - instead of the meal - to a luxury hotel at Apple & Co expense. The finance director has also suggested that the current year audit fees is negotiated to be a percentage of Apple & Co net profit for the year. This year, for the first time, Apple & Co has approached your audit firm to help in promoting the process of issuing shares of Apple & Co - in the stock market. Discussions now are at the early stage and no actions has been taken yet. The total fees of the audit and other work would fall within acceptable levels in line with applicable code of ethics. The financial manager of Apple & Co requires this year that their audit to be completed within 15 days; however, this is a very busy time for your audit firm and so it is intended to use more junior staff as they are available. Additionally, in order to save time and cost, ANWAR & Co have not contacted Apple & Co's previous auditors. Required: Identify and explain FIVE situations where ethical threats which arise from the above action are existed; and for each ethical threat explain the steps which ANWAR & Co should adopt to reduce the threats arising. Note: Prepare your answer using three columns headed The Issue, Ethical threats and Auditor's response respectively. (25 marks)