You may use a tabulated format if helpful having Threats, Safeguards and Objective Assessment as column headings.

Mark Calaway has been appointed as a junior auditor of West Accounting Limited (WAL). One of his first tasks is to review the firms audit clients to ensure that independence requirements of APES 110 (Code of Ethics for Professional Accountants) are being met. His review has revealed the following:

Chris Henry CPA is a partner in WAL and has been recently assigned as the engagement partner on the audit of Osborne Grocers Limited (OGL). Charlotte Flair CA is another partner in WAL who works in the same office as Chris. Charlotte is not working on the OGL audit. Charlottes husband Zack is planning on purchasing significant shares in OGL.

Required: For each of the independent situations above, and using the conceptual framework in APES 110 (Code of Ethics for Professional Accountants), answer the following questions: 1. Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified. (10 marks) 2. Provide an objective assessment of whether audit independence can be achieved (10 marks)