PracticeConsultingPrince Jefri case under the spotlight again as English ICA issues conflict of interest guidance

Prince Jefri case under the spotlight again as English ICA issues conflict of interest guidance

Only weeks after the US Securities and Exchange Commission's damning report on PricewaterhouseCoopers' sharedealings in listed audit clients, the English ICA has made conflict of interest and confidentiality the theme of its latest technical release.

The guidance has been prepared following the high-profile Prince Jefri vs KPMG case last year, which highlighted the responsibilities of firms where the interests of two clients or of a client and a former client conflict, but the timeliness is also indicative of growing international concerns about Big Five firms.

The report stresses that firms should seek to obtain client consent wherever possible, but if it is not, a Chinese wall will be effective if it has certain characteristics.

These include the physical separation of the various departments in order to insulate them from each other, carefully defined procedures for dealing with instances where the wall may be crossed, and monitoring by compliance officers.

The guidance applies to all firms, but the increasing instances where Big Five firms are involved with several clients in the same industry, and offering a range of advice will make this particularly applicable to them.

At the same time, the SEC, Auditing Practices Board and the European Commission are all in the process of examing the quality of audits and touch on independence and conflict of interest.

Chinese Walls verdict fuels merger doubts

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer