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Your audit client, Wolds Ltd, is having cash flow problems and has not paid any of the current years fee by the time the auditors
Your audit client, Wolds Ltd, is having cash flow problems and has not paid any of the current years fee by the time the auditors report is due to be issued. They expect business to pick up in the coming year and have requested additional time to pay the bill.
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.
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