Assistance with recruitment of independent non?executive directors

Dear tutor,

I have some concern regarding this question

“It is 1 July 20X5, and you are working as an audit manager at NAAB & Partners , a large audit firm that focuses on auditing retail companies.

The audit partner at Pro Co has worked on the audit for about six years. Recently, her son accepted a job at Pro Co as a sales manager, and as part of his pay, he will receive shares in the company.

Pro Co has asked NAAB & Partners to provide tax advice to reduce its tax liability. The company suggested that the fee could depend on how much tax is saved, and the fee is expected to be quite large.

The company also plans to set up an audit committee but currently has no independent non-executive directors with suitable financial experience. Therefore, they have asked the audit firm to help by reviewing candidates and advising on their qualifications and financial expertise.

question:

Which of the following statements is TRUE in respect of the request for assistance with
recruitment of independent non?executive directors for Pro Co?
? No threat arises and no safeguards are required
? The audit engagement partner cannot provide assistance and another partner must
provide assistance
? The audit firm cannot provide assistance and the request must be declined
? The audit engagement partner can provide the assistance but an engagement quality
review must be performed
”

My doubt is why the answer is not Option 3? From the theory, I learned that engaging in recruitment activities can lead to self-interest threats because the audit firm may be reluctant to criticise the performance of those staff members as the advice they gave on recruitment looks bad. Is the theory not applicable to the case of this question?

Thank you!