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:

(d) Steven Rowley, the current senior manager on the audit of Western Minerals Limited (WML) which specialises in the production of mining equipment, is planning on entering into a business partnership (Luxury Caravans Limited) with the CFO of WML, whereby they will both be equal partners in a business retailing caravans. Steven informs Stephen Tiler that this is not a problem since the two entities (WML and Luxury Caravans Limited) are in different non-competing industries.

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