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Threats and conflicts in Business
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[QUOTE="Yakub02, post: 303925, member: 94426"] The significance of such threats will depend on factors such as the source of the pressure and the degree to which the information is, or may be, misleading. The significance of the threats should be evaluated and unless they are clearly insignificant, safeguards should be considered and applied as necessary to eliminate them or reduce them to an acceptable level. Such safeguards may include consultation with superiors within the employing organisation, for example, the audit committee or other body responsible for governance, or with a relevant professional body. Where it is not possible to reduce the threat to an acceptable level, a chartered accountant should refuse to remain associated with information they consider is or may be misleading. If the chartered accountant is aware that the issuance of misleading information is either significant or persistent, he should consider informing appropriate authorities in line with the guidance in this code. The chartered accountant in business may also wish to seek legal advice or resign. c . Potential conflicts There may be times when the responsibilities of a chartered accountant to an employing organisation come into conflict with their professional obligations to comply with the fundamental principles in the Code. Where compliance with the fundamental principles is threatened, a chartered accountant in business must consider a response to the circumstances. Responsibilities to an employer may put a chartered accountant under pressure to act or behave in ways that could directly or indirectly threaten compliance with the fundamental principles. Such pressure may be explicit or implicit; it may come from a supervisor, manager, director or another individual within the employing organisation. A chartered accountant in business may face pressure to: i. Act contrary to law or regulation; ii. Act contrary to technical or professional standards; iii. Lie to, or otherwise intentionally mislead [/QUOTE]
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