Your client Moira & Stella Pty Ltd (M&S) is a fast-growing manufacturing company. During the past year, the company has provided other services listed below which were potentially in breach of the independence requirement of APES110 apart from completing the annual financial report audit. The unrelated cases are listed in the table below. For each case:

(i)Does a potential threat to audit independence exist in the circumstances (Yes/No)?

(ii)If your answer to part (i) is yes, identify the single most significant type of potential threat and recommend a safeguard, if any, that could reduce or remove the threat. Alternatively, if your answer to part (i) is no, give reasons why no threat exists.

1- M&S Pty Ltd has requested your firm to decide, install and implement new computer system.

2-Your client has requested your audit firm to make an independent valuation of a major investment to be included in the financial report. However, due to the need for funds for its expansion, your client has not paid its audit fee for the past two years.