For the following independent situations, identify and discuss issues related to external auditors ethics and independence under APES110 Code of Ethics for Professional Accountants and Corporations Act. State the main principles/regulations and apply them to each case. Where appropriate, advise the appropriate course of action for the auditor. Hint: In your answer, (a) identify the ethical issue and discuss relevant threats to independence, (b) state applicable rules/regulations and (c) suggest safeguards where applicable.

1.The audit client is satisfied with the audit teams past work so the audit client asks the same team to perform the audit for the 6th consecutive year.

2.The audit client is a listed company and its Chief Executive Officer (CEO) trusts the audit teams accounting expertise. The CEO asks the audit team to provide advice on how to value another business which the audit clients intends to takeover.