In the aftermath of the Oscars envelope mix-up, the president of the Academy of Motion Picture Arts and Sciences (AMPAS) announced that it was re-evaluating its long-running relationship with PwC. AMPAS and its affiliates is a not-for-profit organization. PwC, which was hired by the AMPAS in 1934, is the Academy's financial statement auditor and provides tax services as well the services related to the Oscar balloting process. The AMPAS reported in its tax return that the total cost of its accounting services was $145,000. Smaller organizations like the Hollywood Foreign Press Association, which produces the Golden Globes, pay more for their tax return preparation alone. Further, according to the Los Angeles area professional accountant who specializes in not-for-profits, the 1,700 hours that PwC stated it spent on the ballot process would cost more than $500,000. Some commentators wonder if the AMPAS and PwC relationship is perhaps too cozy. In addition to the length of the relationship, the CFO, who joined the Academy in 2001, previously worked for PwC, and his wife is a partner at PwC. Required: Identify 3 independence threats (there are more, but I will only mark your first 3, so pick/choose with care), discuss the significance of the threat, and lastly state if there is a violation of any rules of professional conduct for the threats you noted - if you state YES, explain. You must use the chart provided in this document. Threat Significance of the Threat Violation of Rules of Professional Conduct (Yes/No)