You are an audit senior of One Don & Co and have been allocated to the audit of Greenland Co (GREENCO), a listed company which has been an audit client for eight years and specialises in manufacturing toiletries and household products.

Brian Tara was the audit engagement partner for GREENCO and as he had completed nine years as the audit engagement partner, he has recently been rotated off the audit engagement. The current audit partner, Jimmy Adams, has suggested that in order to maintain a close relationship with Greenco, Brian should undertake the role of independent review partners this year. In addition, GREENCO has requested that Brian assist them by attending their audit committee meetings, as a non-executive director has recently left the company.

Greenco has also asked Jimmy and the other partners at One don & Co to help them in recruiting a new non-executive directorThe total fees received by One Don & Co for last year equated to 22% of the firms total fee income. The current years audit fee has not yet been confirmed, but along with taxation and other possible non-audit fees the total income from Greenco this year could be greater than for last year. Last years audit fee was being paid monthly by Greenco, but no payments have been made for the last three months.

The audit manager for Greenco has just announced that he is leaving One Don & Co to join Greenco as the financial controller.

Required:

Using the information above:

Identify and EXPLAIN IN DETAILS THE FIVE ethical threats which may affect the independence of One Don & Cos audit of Greenland Co

For each threat explain how it might be reduced to an acceptable level.