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Required: For each scenario, discuss if there is a threat to the auditor's independence and provide an appropriate safeguard to minimize the threat to an
Required: For each scenario, discuss if there is a threat to the auditor's independence and provide an appropriate safeguard to minimize the threat to an acceptably low level. a. Hans Urdall, CPA is the senior auditor responsible for the audit of a large car dealership and happens to be looking for a new car. The sales manager tells him that there is a sale on new cars at a substantial discount that is limited to long-established customers and the dealership. Because Hans has been performing the audit for several years the sales manager has decided Hans is eligible for the discount. b. Luke Jimenez, CPA is the senior auditor responsible for the audit of Apple Vale winery. Last year's audit fees was being paid monthly by Apple Vale, but no payments have been made in the last three months. c. Louise Elbert, CPA owns a material amount of stock in a mutual fund investment company. That company, in turn, owns stock in Elbert's largest audit client. When Louise read the mutual fund's latest financial statement, she learned that the mutual fund investment company's share of ownership in her client increased significantly
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