ethical conflict resolution

Question 1

what is a conflict of interest?

Answer 1

arises when a professionals own interests conflict with the professional’s obligation to act in the interests of another client

Question 2

what do you do to prevent conflict of interest?

Answer 2

code requires that accountant must take reasonable steps to avoid, identify and resolve CoI (both actual & perceived)

Question 3

what do you do in the event of conflict of interest?

Answer 3

if significant enough :
1. notify client & relevant parties of the conflict of interest
2. obtain consent of relevant parties to act (can apply safeguards at this stage)
3. do not continue engagement with client if fundamental principles are threatened