E intimidation pressures and undue influence that

e) Intimidation - Pressures and undue influence that deter objectivity
ii. Safeguards to Address Threats. Safeguards are actions or other measures that may eliminate threats or
reduce them to an acceptable level. They fall into two broad categories:
1. Safeguards created by the profession, legislation or regulation; and

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Learning Module on ASP301
2. Safeguards in the work environment.
In certain cases, a client may also have safeguards that accountants in public practice may rely. However,
it is not possible to rely solely on such safeguards.
• Ethical Conflict Resolution
Step 1 Gather relevant facts.
Step 2 Identify ethical issues involved.
Step 3 Determine fundamental principles related to the matter in question.
Step 4 Consider and follow established internal procedures within the
organization, such as consulting with ethics or personnel department.
Step 5 If not resolved, formulate alternative courses of action, such as
a. Consulting with TCWG, if conflict involves the organization;
b. Obtaining outside professional and legal advice, but observe confidentiality; and
c. Disassociating from the conflict, such as withdrawing from the engagement team or specific
assignment, or resigning altogether from the engagement, the firm or the employer.
2. Part B-Professional Accountants in Public Practice
Summary of Matters Dealt with in Part B of the Code
• Professional Appointment. Accept only a client or engagement that does not compromise compliance.
• Conflicts of Interest . Avoid conflicting interests that could compromise compliance.
• Second Opinions . Provide second opinions when compliance with the Code will not be compromised.
• Fees and Other Types of Remuneration. Commissions, inadequate fees, and contingent fees may compromise
compliance.
• Marketing Professional Services. Assertions in marketing should be honest and truthful.
• Gifts and Hospitality . The accountant shall decline such offers from client, unless trivial and inconsequential.
• Custody of Client Assets. Accountants generally shall not hold client assets.
• Objectivity-All Services. Relationships that compromise the accountant's objectivity should be avoided.
• Independence-Audit and Review Engagements. An accountant who provides an assurance service shall be
independent of the client. Independence comprises (1) independence of mind and (2) independence in
appearance
• Independence-Other Assurance Engagements. Requirements are similar to those for audit and review
engagements.
3. Part C-Professional Accountants in Business
Summary of Matters Dealt with in Part C of the Code
• Conflicts of Interest . An accountant shall not allow a conflict of interest to compromise judgment.
• Preparation and Reporting of Information . An accountant shall prepare and report information in an
appropriate manner.