Conflicts of Interest Flashcards
1
Q
What is a conflict of interest?
A
When a professional accountant must take reasonable steps to identify curcumstances that could pose a conflict of interest
2
Q
What does a conflict of interest create
A
Threats to compliance with principle of objectivity
3
Q
What might conflicts of interest create
A
Threats to compliance with other fundamental principles
4
Q
What does a professional accountant provide?
A
A professional service related to a particular matter for two or more clients whose interests with respect to that matter are in conflict
5
Q
What must be done before accepting a new client or whether there’s a change in circumstance
A
Audit firms must take steps to ascertain whether there is a conflict of interest or if there is likely to be one in the future
