Chris Walters has been appointed as a junior auditor of Awesome Accounting Limited (AAL). One of his first tasks is to review the firm's audit clients to ensure that independence requirements of APES 110 (Code of Ethics for Professional Accountants) are being met. His review has revealed the following:

Sandra Watson is an assurance manager with AAL and it has just been decided to allocate her to the audit of Organic Foods Limited (OFL). Sandra's financially dependent daughter, Anna, who is still in high school has recently received some inheritance from her grandfather with which she plans to buy a small parcel of shares in OFL.

For each of the independent situations above, and using the conceptual framework in APES 110 (Code of Ethics for Professional Accountants), answer the following questions:

1. Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified.

2. Provide an objective assessment of whether audit independence can be achieved