While evaluating compliance with the fundamental principles, finance and accounting professional may be required to resolve a conflict in the application of fundamental principles.
The following needs to be considered either individually or together with others, during a conflict resolution process:
ü Relevant facts.
ü Ethical issues involved.
ü Fundamental principles related to matter in question.
ü Established internal procedure.
ü Alternative course of action.
Having considered these issues, a professional should determine the appropriate course of action that is consistent with fundamental principles identified & weight the results of each possible course of action. If the matter remains unsolved, the professional should take following steps:
- Consult the appropriate person within the firm or employing organization fro help in obtaining resolution.
- If the matter involves conflict within an organization; then it is advisable to consult with those charged with governance of the organization of the organization such as BOD.
- It may be in the best interest of the professional to document the detail and the substance of issue.
- If a significant conflict cannot be resolved, obtain advice from the relevant professional body or legal advisors & there by obtain guidance on ethical issues without breaching confidentiality.
- If after all relevant possibilities, the ethical conflict remain unresolved, it is appropriate to withdraw from the engagement team or specific assignment or to resign altogether from the engagement team, the firm or the employing organization.