QUESTION 5: For each of the following situations, state the key threats to auditor independence (from the five threats identified in SECTION 300 of APES 110).

Situation 1: An employee of an audit client who has influence over the preparation of the financial report, resigns and takes up a position with the audit firm.

Situation 2: A member of the assurance team resigns and takes up a position as a director with an audit client.

Situation 3: A member of the assurance team serves as the company secretary of an audit client.

Situation 4: An audit firm is concerned about losing a significant client.

Situation 5: An audit partner has a longstanding friendship with the CFO of the audit client.