use a tabulated format if helpful having "Threats", "Safeguards" and "Objective Assessment" as column headings.

Stephen Tiler CPA has been appointed as a junior auditor of Best Solutions Limited (BSL). One of his first tasks is to review the firm's audit clients to ensure that independence requirements of APES 110 (Code of Ethics for Professional Accountants) are being met. His review has revealed the following:

(a) BSL has recently been approached by Western Yachts Limited (WYL) to conduct its audit to which BSL has agreed. Paul Levesque is one of the audit partners at BSL who is being considered to lead the WYL audit. Paul's sister, Lynn Levesque is a cosmetic surgeon in Perth who is widely regarded for excellence in plastic surgery. Paul is aware that Lynn holds significant shares in WYL.

1. Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified.

2. Provide an objective assessment of whether audit independence can be achieved