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Unformatted text preview: thical requirements relating to such communications and disclosure, which may
vary by jurisdiction.
Circumstances where the professional accountant is or may be required to disclose confidential
information or where such disclosure may otherwise be appropriate are set out in Section 140 of
Part A of this Code. 32 210.14 A professional accountant in public practice will generally need to obtain the client’s permission,
preferably in writing, to initiate discussion with an existing accountant. Once that permission is
obtained, the existing accountant shall comply with relevant legal and other regulations governing
such requests. Where the existing accountant provides information, it shall be provided honestly
and unambiguously. If the proposed accountant is unable to communicate with the existing
accountant, the proposed accountant shall take reasonable steps to obtain information about any
possible threats by other means, such as through inquiries of third parties or background
investigations of senior management or those charged with governance of the client. SECTION 220
Conflicts of Interest
220.1 A professional accountant in public practice shall take reasonable steps to identify circumstances
that could pose a conflict of interest. Such circumstances may create threats to compliance with
the fundamental principles. For example, a threat to objectivity may be created when a
professional accountant in public practice competes directly with a client or has a joint venture or
similar arrangement with a major competitor of a client. A threat to objectivity or confidentiality
may also be created when a professional accountant in public practice performs services for
clients whose interests are in conflict or the clients are in dispute with each other in relation to the
matter or transaction in question. 220.2 A professional accountant in public practice shall evaluate the significance of any threats and
apply safeguards when necessary to eliminate the threats or reduce them to an acceptable level.
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This document was uploaded on 04/03/2014.
- Spring '14