you are the audit manager of bipio & co and you are planning the audit of nokiaas co, which has been an audit client for four years and specialises in manufacturing luxury mobile phones.

During the initial meeting of the audit you have obtained the following information.

The employees of Nokiaas Co are entitled to purchase mobile phones at a discount of 10%. The audit team has in previous years been offered the same level of staff discount.

During the year the financial controller of Nokiaas was ill and hence unable to work. The company had no spare staff able to fulfil the role and hence a qualified audit senior of BIIPIIO & co was seconded to the client for three months. The audit partner has recommended that the audit senior work on the audit as he has good knowledge of the client. The fee income derieved from Nokiaas was boosted by this engagement and along with the audit and tax fee, now accounts for 16% of the firm's total fees.

From a review of the correspondence files you note that the parter and the finance director have know each other socially for many years. As a result of this friendship 30 % of your audit fees is still outstanding as as this stage.

Explain all the ethical threats which may affect the independence of BIIPII&Co's audit of Nokiaas Co. and explain how each threat can be avoided in a table