Conflict of Interest
A member has a significant financial interest, is a member of management, or is in a position of influence in a company that is a major competitor of a client for which the member performs consulting services
What is conflict of interest?
Disclosing confidential information to others
What is a rule break?
Exercise: Robert lived next door to Evan while growing up and they stayed friends over the years. Robert is a mechanic and works on cars while Evan is a CPA. Robert's old CPA, Jay Bird CPA, died so Robert asked Evan to do his quarterly reviews.
What is the issue with this?
What is Robert is a close friend of Evan's so the familiarity threat exists?
A member serves on a city's board of tax appeals, which does not consider matters involving any of the member's tax clients
What is no conflict?
Creating false or unjustified expectations of favorable results
What is a rule break?
What is the name of the threat described below?
The threat that a member could benefit, financially or otherwise, from an interest in, or relationship with, an attest client or persons associated with the attest client.
What is the self-interest threat?
A member recommends or refers a client to a service bureau in which the member or partner(s) in the member's firm hold material financial interest(s)
What is a conflict of interest?
Contain a representation that specific professional services in a current or future period will be performed for a stated fee when it was likely at the time of representation that such fees would not be increased and the client was advised
What is not a rule break?
The first step of the steps of conceptual framework
What is identify threats?