Dorothy $($an audit manager$)$ has been assigned to the audit or Tame Electric, inc. Dorothy is concermed because Joanne, a friend from her college days, is on the internal audit staff of Tander Electric. Dorothy believes she could provide services to this client in en objective manner but is concerned about the appearance of her independence. Which statement best describes how Dorothy should apply the AICPA conceptual framework approach in this situation?

Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threats to an acceptable level.

Dorothy should not provide services to Tandem Electric because no safeguards would be effective in mitigating threats to her Independence.

Dorothy should document her assessment of independence, which should include a sworn statement from Joanne.

Dorothy should not participate in the audit of Tandem Electric before obtaining a written waiver from her firms general counsel.