Write answers to situations described below addressing the required criteria (i.e. 1 & 2) in each independent case. use a tabulated format if helpful having Threats, Safeguards and Objective Assessment as column headings.

Steven Cahan CPA has been appointed as a junior auditor of Brendan & Brendan Accounting Solutions (BBAS). 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:

APES 110 link: https://apesb.org.au/wp-content/uploads/2023/05/Compiled_APES_110_Dec_2022.pdf

1. BBAS has recently been approached by Austin Ferries Limited (AFL) to conduct its audit to which BBAS has agreed. The accountant at AFL, Rachel Sheffield is the sister of Sylvester Sheffield CA, who is an audit partner at BBAS. Sylvester put in a request to lead the AFL audit. Sylvester believes that he can get the AFL audit completed efficiently and effectively since he can get all the necessary information he needs from his sister. However, BBAS will not be assigning Sylvester to the audit team of AFL.