You are the auditor of Watei Travel (W&T) Ltd, a large travel agent that also handles all your audit firms travel arrangements on normal commercial rates and provides excellent service. The managing director of W&T has indicated that the company is having a tough time of it due to the lack of consumer confidence in the economy at the moment and has asked if you could help by recommending their services to your other audit clients. He has said that he will understand if you are not able to do so. You happily agree to provide the recommendation, as you have always been satisfied with their service.

1) Describe the type of potential threat to independence. Justify your answer.

2) For threat, describe a safeguard, if any, which could be implemented to reduce each of the independence threats to an acceptable level.