(Time recommended: 15 minutes) Ronaldo is an audit manager with Audits & Associates (A&A) which has been the auditor of MU Ltd for the past two years. MU Ltd is the largest client of A&A and represents a significant portion of the total annual revenue earned by the Audit Firm. While negotiating the terms of the current year audit, the Board of MU Ltd asks Ronaldo to give a speech about MU Ltd at the 2022 FIFA World Cup Investment Seminar, to assist in promoting MU Ltd's business to attract more investors. Though this is outside A&A's normal practice, the Board of MU Ltd says that the company will only continue business engagements with A&A if they provide this assistance. To provide an additional incentive, MU Ltd is willing to offer all the A&A audit team members free FIFA World Cup tickets and travel fares to Qatar for the upcoming games in November 2022. Ronaldo agrees to the deal as A&A is financially dependent on this client and during the course of the audit, feels pressured to overlook a number of questionable judgements in relation to MU Ltd's accounting records. Required: (a) Provide two reasons why it is important for an auditor to be independent. (2 marks) (b) Discuss and explain the threats to independence present in this case and the related ethical principles that are breached under APES110. Please be specific in your explanation and only include relevant principles and/or threats. (5 marks) Edit View Insert Format Tools Table 12pt v Paragraph v | BI U