Write answers to each of the 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. 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 the 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 specializes 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.

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