What do you mean independence of auditors? Consider each situation independently. Find out the threat that it posses on the independence of auditor.

i. The audit manager in charge of the audit assignment of Sheetal Co holds 1,000 Tk.100 ordinary shares in the company (total shares in issue 100,000). The audit partner holds no shares.

ii. The audit fee receivable from Janet Co, a private company is Tk.100,000. The total fee income of the audit firm is Tk.700,000.

iii. The audit senior in charge of the audit of Margot Bank Co has a personal loan from the bank of $2000,000 on which she is currently paying 12% interest.

iv. The members of the assurance team were responsible for preparation of financial statement of ABC Co. now they are assigned to audit the same company.