Part B The audit engagement partner for Goofy Co. has been in place for approximately six years and her son has just accepted a job offer from Goofy Co. as a sales manager; this role would entitle him to shares in Goofy Co. as part of his remuneration package Goofy Co.'s year end s 31 December, which is traditionally a busy time for NAB & Co. Goofy Co. currently has an internal audit department of five employees but they have struggled to undertake the variety and extent of work required by the company hence Goofy Co. is considering using NAB & Co. to provide the internal audit services as well as remain as external auditors. If NAB & Co. is appointed as internal as well as external auditors, then Goofy Co. has suggested that the external audit fee should be renegotiated with at least 20% of the fee being based on the profit after tax of the company as they feel that this will align the interests of NAB & Co. and Goofy Co. Discussion Explain the ethical threats which may affect the independence of NAB & Co. in respect of the audit of Goofy Co., and for each threat explain how it may be reduced