Write answers to each of the five (5) situations described below addressing the required criteria (i.e. 1 & 2) in each independent case. You may use a tabulated format if helpful having "Threats", "Safeguards" and "Objective Assessment" as column headings.

Bradley Cooper has been appointed as a junior auditor of Australian Silver Lining Accountants (ASLA). One of his first tasks is to review the firm's 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:

(a) Sheldon is a Partner in ASLA who provides audit services to Easfarmers Limited (Easfarmers). Leonard is another Partner in ASLA who provides substantial non-audit services to Easfarmers. Leonard's wife Juliette is planning on purchasing significant shares in Easfarmers.

(b) ASLA has recently accepted an engagement to provide audit services to Blueberry Limited (Blueberry). Rex Walsh is an Audit Partner at ASLA but is not involved with the audit of Blueberry. Rex's daughter Michelle Walsh works as a Financial Accountant at Blueberry.

(c) While having a conversation with Brock Lesnar, an Audit Senior at ASLA, Bradley learns that Brock has been requested to perform Secretarial duties for Australian Minerals Limited (AML) for about six months. AML has been ASLA's audit client for a number of years. The long standing Company Secretary of AML, Mr Stephen Taylor has retired. Stephen's role ranged from performing administrative duties to providing advice on corporate governance. The Directors of AML anticipate that it would take about six months to find a suitable replacement and in the meanwhile would like Brock to help.

(d) The Founding Partner of ASLA, Mr. Clooney, has long operated a small proprietary company (NOT public interest entity), called AA Pty Ltd (AA). ASLA has performed the annual audit of AA (as required by the company's constitution) for the past two years. ASLA performs tax calculations for AA for the purpose of preparing accounting entries that are subsequently audited by ASLA.

(e) Jeffery Stallone, the current Senior Manager on the audit of ADBC Ltd (ADBC) which specialises in the production of mining equipment, has just entered into a business venture (Zoom Motors) with the CFO of ADBC, whereby they are both equal partners in a business retailing motor vehicles. Jeffery has informed you that this is not a problem since the 2 entities (ADBC and Zoom Motors) are in different non- competing industries.

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.

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