The firm of Williams, Kline & Chow, CPAs, is the auditor of Yuker Corporation, a nonpublic company.

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The firm of Williams, Kline & Chow, CPAs, is the auditor of Yuker Corporation, a nonpublic company. The president of Yuker, Karen Lester, has been putting pressure on Chee Chow, the audit partner, to accept a questionable accounting principle. She has even threatened to take steps to replace the CPA firm if he does not acquiesce. Does this situation impair the CPA firm’s independence? Explain your answer.

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