Samson & Co is an accountancy firm from the Mwanza. They are the auditors for Cleaver Bankers. Samson & Cos 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 companys audit report, the fee remaining unpaid was TZS1,000 million.

Samson & Co has another client, Twinkletoes 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?