This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ant
in public practice shall evaluate the significance of any threats created by business interests or
relationships with the client or a third party.
220.3 Depending upon the circumstances giving rise to the conflict, application of one of the following
safeguards is generally necessary:
(a) (b) Notifying all known relevant parties that the professional accountant in public practice is
acting for two or more parties in respect of a matter where their respective interests are in
conflict and obtaining their consent to so act; or (c) 220.4 Notifying the client of the firm’s business interest or activities that may represent a conflict
of interest and obtaining their consent to act in such circumstances; or Notifying the client that the professional accountant in public practice does not act
exclusively for any one client in the provision of proposed services (for example, in a
particular market sector or with respect to a specific service) and obtaining their consent to
so act. The professional accountant shall also determine whether to apply one or more of the following
(a) The use of separate engagement teams; (b) Procedures to prevent access to information (for example, strict physical separation of such
teams, confidential and secure data filing);
155 (c) Clear guidelines for members of the engagement team on issues of security and
confidentiality; (d) The use of confidentiality agreements signed by employees and partners of the firm; and (e) Regular review of the application of safeguards by a senior individual not involved with
relevant client engagements. 220.5 Where a conflict of interest creates a threat to one or more of the fundamental principles,
including objectivity, confidentiality, or professional behavior, that cannot be eliminated or
reduced to an acceptable level through the application of safeguards, the professional accountant
in public practice shall not accept a specific engagement or shall resign from one or more
conflicting engagements. 220.6 Where a professional accountant in public p...
View Full Document
This document was uploaded on 04/03/2014.
- Spring '14