Review the situations below and explain if the matters raised can affect the independence of the Auditor, showing clearly the threats involved (if any) and the safeguards and/or preventative measures that can be put in place to mitigate against these.

(i) The Audit Manager in charge of the audit assignment of Iron Shore Limited has just purchased 50% shares in Iron Shore. Resulting from this, he now sits as the Chairman of the Board of Iron Shore Ltd.

(ii) An Audit Partner of a firm TCL Certified Accountants is a personal friend of the Managing Director of Iron Shore Ltd. The partner is not responsible for the audit of Iron Shore Ltd.

(iii) Peter Brown the Audit Manager, has been asked to continue with preparation of the financial statements of Iron Shore Ltd as in previous years.

(iv) John Brown, prior to being assigned as senior auditor of the Trafalgar Commercial Bank, had taken out a bank loan at market rate to purchase a new car. The payment is being made through salary deduction.

(v) An advertisement was placed in both daily papers, inviting tenders to submit bids for the supply of textbooks over a three year period. Both Phillip and Neville is assigned to the team that audits the company that prints the textbooks and they are trying to decide if they should put in a bid for the contract. Neville decides to ask the audit partner to advise on the matter.