What steps should be taken in the event of a conflict of interest?
- Once a conflict is noted, advise all clients of the situation
- Reassure the client that adequate safeguards will be implemented, e.g. separate engagement leaders for each client, separate teams, 'Chinese Walls' to prevent the transfer of client information between teams and a second partner review
- Suggest they seek additional independent advice
- If safeguards can't be implemented, the auditor should resign