Your firm proposes to assist Company X (a tax client) in a possible acquisition. When evaluating a potential conflict of interest, you determine that threats are at an acceptable level. What else does the AICPA code require you to do? a) Apply safeguards that completely eliminate the conflict of interest. b) Disclose the conflict to the relevant parties and obtain their consent to perform the services. c) Apply professional judgment to determine your next steps. d) Disclose the nature of the conflict of interest in your firm's final report
Your firm proposes to assist Company X (a tax client) in a possible acquisition. When evaluating a potential conflict of interest, you determine that threats are at an acceptable level. What else does the AICPA code require you to do? a) Apply safeguards that completely eliminate the conflict of interest. b) Disclose the conflict to the relevant parties and obtain their consent to perform the services. c) Apply professional judgment to determine your next steps. d) Disclose the nature of the conflict of interest in your firm's final report
Chapter1: Comprehensive Cases
Section1.1: Enron Corporation
Problem 2Q
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Your firm proposes to assist Company X (a tax client) in a possible acquisition. When evaluating a potential conflict of interest, you determine that threats are at an acceptable level. What else does the AICPA code require you to do?
a) Apply safeguards that completely eliminate the conflict of interest.
b) Disclose the conflict to the relevant parties and obtain their consent to perform the services.
c) Apply professional judgment to determine your next steps.
d) Disclose the nature of the conflict of interest in your firm's final report.
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