You are an auditor senior of Abay & Co and have been allocated to the audit of Dashen Co (Dashen), a listed company which has been an audit client for eight years and specializes in manufacturing musical instruments. Solomon was the audit engagement partner for Dashen and as he had completed seven years as the audit engagement partner, he has recently been rotated off the audit engagement. The current audit partner, Abdu, has suggested that in order to maintain a close relationship with Dashen, Bethan should undertake the role of independent review partner this year. In addition, Dashen has requested that Bethan assist them by attending their audit committee meetings, as a non-executive director has recently left the company. Dashen has also asked Abdu and the other partners at Abay & Co to help them in recruiting a new non-executive director. The total fees received by Abay & Co for last year equated to 16% of the firm's total fee income. The current year's audit fee has not yet been confirmed, but along with taxation and other possible non-audit fees the total income from Dashen this year could be greater than for last year. Last year's audit fee was being paid monthly by Dashen but no payments have been made for the last three months. The audit manager for Dashen has just announced that he is leaving Abay & Co to join Dashen as the financial controller.

Required:

Using the information above:

(i)Identify and explain FIVE ethical threats which may affect the independence of Abay & Co's audit of Dahen Co; and

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