Samson & Co is an accountancy firm from the Mwanza. They are the auditors for Cleaver Bankers. Samson & Co’s signing partner has taken a home loan from this bank. Samson, the signing partner, is paid a fee of TZS 800 million. His total fee for the year is TZS1,200 million. As of 12 February 20X1, when he signed the company’s audit report, the fee remaining unpaid was TZS1,000 million.

Samson & Co has another client, Twinkle toes Ltd, a shoe manufacturer. The client has asked the firm to accept a fee to produce a cash flow forecast to be presented to their bankers:

• TZS100 million if finance is obtained.

• TZS12 million if no finance is obtained.

Required:

Does Mr. Samson face a threat to his independence?

Answer rating: 100% (QA)

Yes Mr Samson the signing partner of Samson Co faces a threat to his independence in the given scena... View the full answer