An accountancy firm is asked to advise two clients who are competing to buy the same business. What is the most appropriate response?

Correct answer: D) Advise both only if the conflict is disclosed, both clients consent, and safeguards such as separate teams and information barriers are applied

Explanation

Acting for competing clients creates a conflict of interest that threatens objectivity and confidentiality. The firm may continue only if the threats can be reduced to an acceptable level, normally by disclosure, obtaining consent and using separate teams with information barriers. Sharing information would breach confidentiality, and choosing by fee level is not an ethical basis.