Conflict of interest
A conflict of interest arises when professional interests or duties relating to one party are incompatible with those relating to another party or with the accountant’s own interests. Identify and evaluate the threat, consider applicable permissions and safeguards, and decline or withdraw when it cannot be addressed.
Worked example
A firm is asked to advise two parties negotiating the same acquisition and considers confidentiality and whether both engagements can be accepted.
Common mistake
Disclosure and consent are not universal cures for every prohibited or unmanageable conflict.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |