You had been recently promoted to Senior Auditor of the audit firm Jose Rizal and Associates and was asked to

consider the following independent situations:

A. Leanna David is part of the audit team for the current audit of Jupiter Pty Ltd (Jupiter). After 2 weeks at the

client, he has advised you that he has been offered a job at Jupiter as soon as the current audit is finished.

Question:

(a) Identify the type of potential threat to independence. Justify your answer. (8 marks)

(b) Explain what safeguards, if any, that could be implemented to reduce the independence threats. (4

marks)

(c) Assess whether audit independence can be achieved. (4 marks)