Jegapalan & Thanipalan ("J&T") is an established audit firm in SK town with a significant share of the audit services market among local businesses. Because SK town is relatively far away from the nearest big towns, many clients rely on J & T for accounting and advisory advice over and above the annual audit. As a result, it has also developed expertise in compliance advice, tax planning and other consulting services As non-audit work is crucial to J&T, its staff have 'business growth target that are strongly linked with their bonuses and promotion. Hence, many of the professional accountants in the firm actively seek to increase sales of non-audit services to businesses in the SK town area, including from audit clients. In the firm, every staff is expected to help out with any projects, including getting involved in both audit and non-audit tasks. The division between audit and non-audit services are not clear, as such staff may work on either audit or non-audit work. Managing partner, Mr. Jegapalan told his staff that the non-audit revenue is now very critical to the firm, as such staff should not do anything to threaten that source of income. Required: (a) Explain 'ethical threat' and 'ethical safeguard' in the context of external auditing (8 marks) (b) Discuss the benefits of effective ethical safeguards for J&T. (9 marks)