Conflicts between the interests of different clients Flashcards
1
Q
When does this situation arise?
A
When different clients are in direct compeition with each other and where auditor has access to sensitive information
2
Q
What may an audit firm have?
A
Two or more clients whose interests may be in conflict, provided that work the audit firm undertakes is not, by itself, likely to be subject to dispute between clients
3
Q
When should an appointment not be accepted or continued?
A
Where the acceptance or continuance of an engagement even with safeguards, materially prejudice interest of any client
4
Q
Examples of prejudices (Leakage)
A
Leakage of information from one client to another
5
Q
Examples of prejudices (Forced)
A
Audit firm being forced into a position where it has to choose between interests of different clients
