The audit partner requires a written short report to be presented in simple language and in an interesting, easy-to-read format. It should: i. Using your knowledge of APES 110, identify and explain the potential type of threat to Fellowes and Associates' independence in situations (1) and (2) above. ii. What action should Fellowes and Associates take to eliminate the potential threats to independence in situations (1) and (2) above? What safeguards should be instituted to reduce the risk of similar independence threats occurring in the future?