Acca aaa s21 Notes

effective
.
5. Conflict of interest
This is not a fundamental principle but a situation that creates a threat to objectivity (and possibly 
other fundamental principles). An example is where the auditor has two clients and one of the clients 
wants to buy the other. The auditor has been asked to advise the purchaser. The conflict of interest 
arises because the auditor will have detailed knowledge about the target company: costs, mark-ups, 
budgets etc which would be very useful to the purchaser. Even if no confidential information was 
supplied, there can be the suspicion that it might be and you can understand why clients might feel 
uncomfortable. 
In such a situation, the audit firm should inform both parties. They might say that they are not 
bothered, but even then the audit firm must judge whether it would be seen to be independent and if 
there is a risk to reputation the work should be turned down.
6. Proposed Revisions to the Code
IESBA 
Proposed Revisions to the Code to Promote the Role and Mindset Expected of Professional 
Accountants
is an examinable document. The objective of the "role and mindset" (formerly 
"professional skepticism") project is to ensure that the Code promotes the role, mindset and 
behavioural characteristics expected of all professional accountants.
Note: 
Topics of exposure drafts are examinable to the extent that relevant articles about them are 
published in student accountant. It is particularly important, therefore, to read articles about exposure 
drafts which you will also find in the technical articles section of AAA study resources (see 
www.accaglobal.com/gb/en/student/exam-support-resources.html
)
September 2021 to June 2022 exams
Watch free ACCA AAA lectures 
27

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community