Conflitcs of Int, Directorship and Gifts

Question 1

Conflicts of Interest, should ask…

Answer 1

Would a reasonable and informed 3rd party conclude that a conflict exists

Question 2

Two main types of conflicts?

Answer 2

1 Between interests of two clients

2 Between interests of client on one hand and firm and/ or it’s members on the other

Question 3

Identification means…

Answer 3

Before accepting an engagement, members should identify potential conflicts that threaten independence and objectivity and should continue to monitor as engagement progresses

Question 4

Evaluation means…

Answer 4

When a conflict is identified, the conceptual framework should be applied and engagements should be refused/ended if violation is high

Question 5

Implementing mechanisms to prevent unauthorized disclosures of confidential agreements and physical and electronic separation of confidential information

Answer 5

1 Use separate engagement teams

2 Use policy and procedures to limit access

Question 6

What to look for with Gifts and Entertainment

Answer 6

1 Are objectivity and integrity threatened
2 Are policies violated
3 Are they reasonable (for bday, holiday)