What threat to independence does each of the pose


Problem

Adele, a senior technical manager at Coco Chartered Accountants (Coco) is reviewing the firm's independence for some of its audit clients. She identified the following:

• Coco seconded Gilber, a senior auditor, to Chair Ltd where she assisted in the preparation of financial statements. Gilber is part of the audit team of Chair Ltd.

• James, a partner of Coco resigned and joined one of Coco's biggest clients, Table Pty Ltd, as a Director, where he is in a position to exert significant influence over the preparation of Table's accounting records and financial statements.

• In providing tax services to Stool Ltd, Coco performed a valuation to assist it with its reporting obligations and for tax purposes only. The result of the valuation did not have a direct effect on the financial statements.

• Coco provided IT systems services to Armchair Pty Ltd, and these related to the design and implementation of IT systems that were unrelated to internal control over financial reporting.

• Coco acted as an expert witness, calculating estimated damages that became payable as a result of litigation for one of its main clients, Sofa Pty Ltd.

Task

What threat to independence does each of the above pose to Coco, if any? Provide reasons.

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Accounting Basics: What threat to independence does each of the pose
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