While evaluating compliance with the fundamental principles, finance and accounting professional may be required to resolve a conflict in the application of fundamental principles.

Advertisement

 

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:

 

  1. Consult the appropriate person within the firm or employing organization fro help in obtaining resolution.
  2. 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.
  3. It may be in the best interest of the professional to document the detail and the substance of issue.
  4. 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.
  5. 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.
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
12 Comments

Leave a reply to Anonymous Click here to cancel the reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account