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.

(D) BBAS has been providing its audit client Super Cheap Limited (SCL) with non-audit services for a number of years. Raymond Smith is BBASs partner in charge for providing non-audit services to SCL. While having a conversation with Raymond, Stephen becomes aware that Raymonds wife Christina is planning to purchase a significant number ofshares in SCL. Raymond informs Steven that this should not be a problem as he is involved with providing only non-audit services to the client.