New ethics code reveals insolvency conflict

INSOLVENCY practitioners and auditors have been warned that a updated code of ethics will block them for acting for the same client.

The warning comes as the ICAEW prepares to make the code effective for chartered accountants from January next year.

Previously the code had allowed insolvency people to act for an audit client if the company was going through a solvent liquidation. The new code rules it out however.

Moorfields Corporate Recovery issued a statement saying that audit and corporate recovery departments would be forced to review their arrangements for dealing with potential conflicts of interest.

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