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. Tom Hardy has been appointed as a junior auditor of Awesome Chartered Accountants (ACA).One of his first tasks is to review the firms audit clients to ensure that independencerequirements of APES 110 (Code of Ethics for Professional Accountants) are being met. Hisreview has revealed the following: (a) Sheraton Motels Ltd (SML) is a chain of fifteen motels operating in Western Australia.ACA performs audit work for SML. This is the second year that ACAs audit fee fromSML will comprise of around 17% of total ACAs audit fee revenue. (b) Tech Grand Savers Ltd (TGS) has not paid any of its audit fees for the last three years toACA, citing cash flow problems. This has resulted in a significant amount of overdueaudit fees for ACA. The audit partner in charge, John Wick has been reluctant to push theissue further, as TGS is a high profile client who he wishes to retain. (c) For the past four years, ACA has been the auditor of Burswood Holiday Resorts Ltd.(BHR). Brock Lesnar CA has been the audit partner responsible. To express sinceritytowards ACA and Brock, and to maintain the good relationship in anticipation of anothersmooth audit for 2016, BHR would like to present a complimentary 3-week holidaypackage voucher for Brocks Family to Hawaii. All expenses, including accommodation,food, drink and travelling costs, will be paid by BHR. (d) While having a conversation with Jeff Stallone, an audit senior at ACA, Tom learns thatJeff is excited to have been allocated to this years audit team for Jumbo IndependentGroceries Pty Ltd (JIG) (Please Note: JIG is not a Public Interest Entity). Jeff was on atemporary assignment at JIG just a month ago, helping JIG with tax & accountingservices. Jeff helped JIG with its tax calculations and preparing financial statements basedon information in the trial balance. This work will be reflected in the 30 June 2016financial report. Jeff does not think there to be much audit work required around the taxaccounts and is confident for the audit to be highly efficient this year. (e) Bradley Cooper, an audit senior with ACA is very excited to be a part of the audit team ofMassive Metal Ltd. (MM). Bradley feels that he will be a valuable asset to the audit team,as his dad is MMs financial controller who is responsible for the preparation of MMsfinancial report. Both Bradley and his dad are financially independent. 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) toreduce the independence threat(s) identified. (5 marks) 2. Provide an objective assessment of whether audit independence can be achieved (5 marks) (Total 10 Marks)