Bpp learning Media is an acca approved Content Provider

conflict 
between 
members' 
and 
clients' 
interests 
might arise if members 
compete directly 
with a client, or have a 
joint venture 
with a company 
that is in competition with the client. 
The rules state that members and firms should 
not accept 
or continue 
engagements in which there are
, 
or are likely to be, 
significant conflicts of interest 
between members, firms and clients. 
Members should 
evaluate the threats 
arising from a conflict of interest and, unless they are insignificant, 
they should apply 
safeguards
. The test of whether a threat is significant is whether a 
reasonable 
and 
informed 
third party
, having knowledge of all relevant information, would consider the conflict of interest 
as likely to affect the judgement 
of members and firms. 
Disclosure 
(ie informing all known relevant parties of the possible conflict of interest) is the most 
important safeguard. There are other solutions depending on the situation, such as using a separate 
team of people or signing confidentiality agreements. 
6.5 Self-interest threat 
The ACCA Code of Ethics and Conduct (ACCA, 2016) highlights a great number of areas in which a self-
interest threat to independence might arise. 
SELF-INTEREST THREAT
Financial
interests
Close business
relationships
Employment with assurance client
Partner on client board
Family and personal relationships
Gifts and hospitality
Loans and guarantees
Overdue fees
% or contingent
fees
High %
of fees
Lowballing
Recruitment
6.5.1 Financial interests 
Financial interests 
exist where an audit firm has a financial interest in a client's affairs; for example, 
the audit firm owns shares in the client, or is a trustee of a trust that holds shares in the client. 
BPP Tutor Toolkit Copy

---