Write answers to each of the five (5) situations described below addressing the required criteria (i.e. 1 & 2) in each independent case. You may use a tabulated format if helpful having Threats, Safeguards and Objective Assessment as column headings. Riley Watson CPA has been appointed as a junior auditor of Lybrand and Joanna Limited (LJL). One of his first tasks is to review the firms 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) LJL has recently been approached by Western Transport Limited (WTL) to conduct its audit to which LJL has agreed. Barry Cooper is one of the audit partners at LJL who is being considered to lead the WTL audit. Barrys brother, Robert Cooper owns a dealership of Luxury cars in Perth under the name of Western Prestige Limited (WPL). Barry is aware that Robert holds significant shares in WTL.

For each of the independent situations above, and using the conceptual framework in APES 110 (Code of Ethics for Professional Accountants), answer the following questions: 1. Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified. (10 marks) 2. Provide an objective assessment of whether audit independence can be achieved (10 marks)