Conflicts of Interest, Directorships, and Gifts Flashcards
What question should members ask in evaluating possible conflicts of interest?
Would a reasonable and informed third party conclude that a conflict exists?
What are the two main types of conflicts?
Between interests of two clients
Between interests of client on one hand and firm and/or its members on the other
What are the three steps for conflicts?
Identify - potential conflicts that threaten independence & objectivity
Evaluate - apply conceptual framework and looks for safeguards that may reduce threats to an acceptable level
Disclose - conflicts to clients and affected third parties, even at an acceptable level
How to determine if a gift or entertainment is “reasonable”
What is the nature of the gift?
What occasion gives rise to the gift?
What is the cost/value of gift?
What other gifts have been given and how often?
Was the entertainment associated with active conduct of business?
