This document provides advice on two aspects of auditing in Australia: the expectation gap and threat to independence. It also suggests safeguards to reduce these threats to a safe level. The expectation gap refers to the disparity between the public perception about the roles and responsibilities of the auditors regarding audit engagement and what the actual legal roles and responsibilities of the auditors are. Threat to independence is considered as a crucial aspect in the process of financial auditing which demands the auditors to maintain independence from any party having any kind of financial and non-financial interest in the audit client since this can affect the audit result.