ICAEW SE · Chapter 8 · Question 18 of 18
A firm decides it can act for two clients whose interests conflict over the same matter. Which combination of measures is most appropriate to address the conflict?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Disclosing the conflict to both clients and obtaining their consent, using separate engagement teams, and putting in place information barriers
Explanation
Where a conflict of interest can be managed, appropriate measures include disclosing the nature of the conflict and obtaining consent from the relevant parties, and using separate teams with clear policies to protect confidentiality. Keeping the conflict secret or using a single team would increase the threat. Fee levels do not address the conflict.
More The fundamental ethical principles MCQs
- Q2An accountant is asked to evaluate a supplier tender in which her brother is one of the bidders. Which fundamental principle is most at…
- Q3A newly qualified accountant is asked to prepare complex group consolidation adjustments involving foreign subsidiaries, which she has…
- Q4At a dinner party, an accountant tells friends about the financial difficulties of a well-known local business that is one of her firm's…
- Q5An ICAEW member posts comments on social media mocking a former client and making unsupported claims that a rival firm's partners are…
- Q6The ICAEW Code of Ethics is divided into parts. Which part specifically deals with professional accountants in business?
