Ppt.iesba
- 2. 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.
- 3. 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 fundamenta 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 service 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.
- 4. 220.2 A professional accountant in public shall evaluate the significance of any threats and apply safeguards when necessary to eliminate the threats or reduce them to an acceptable level. Before accepting or continuing a client relationship or specific engagement, the professional accountant in public practice shall evaluate the significance of any threats created by business interests or relationships with the client or a third party
- 5. 220.3 depending upon the circumstance giving rise to the conflict, application of one of the following safeguards is generally necessary: a)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 b)notifying all known relevant parties that the professional accountant in public practice is acting for 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)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.