Answer Happy

Please include any relevant reference with APES 110.
Write answers to each of the 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. Stephen Tiler CPA has been appointed as a junior auditor
of Best Solutions Limited (BSL). 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) Steven Rowley, the current senior manager on the audit of
Western Minerals Limited (WML) which specialises in the production
of mining equipment, is planning on entering into a business
partnership (Luxury Caravans Limited) with the CFO of WML, whereby
they will both be equal partners in a business retailing caravans.
Steven informs Stephen Tiler that this is not a problem since the
two entities (WML and Luxury Caravans Limited) are in different
non-competing industries.