You are part of the audit team at Growth Partners, tendering for the audit of IndigoGames for the 2021 financial year. During your review of an Australian Securities and Investments Commission (ASIC) company extract for IndigoGames, you note that Growth holds an interest in IndigoGames. The interest is material to Growth.

Required

(a) What is the threat to compliance with the fundamental principles?

(b) Explain whether any safeguards could be put in place to reduce the threat to an acceptable level.

(c) Would it make any difference to your answers if the shares were held by a tax partner in the office, rather than being held directly by Growth?