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

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.

2. Provide an objective assessment of whether audit independence can be achieved

A) BBAS has recently been approached by Austin Ferries Limited (AFL) to conduct its audit to which BBAS has agreed. The accountant at AFL, Rachel Sheffield is the sister of Sylvester Sheffield CA, who is an audit partner at BBAS. Sylvester put in a request to lead the AFL audit. Sylvester believes that he can get the AFL audit completed efficiently and effectively since he can get all the necessary information he needs from his sister. However, BBAS will not be assigning Sylvester to the audit team of AFL.