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Any conflict of interest?

Preparing employer's company for MTD

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29th Jan 2019 08:57

I see a conflict of interest - what if ‘your’ director strongly disagrees with something the majority directors / shareholders instruct you to do? As the accountant you’d take instruction from that majority. If he throws his toys out of the boardroom, who’s to stay he wouldnt sack you?

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to atleastisoundknowledgable...
29th Jan 2019 10:19

Quote:

I see a conflict of interest - what if ‘your’ director strongly disagrees with something the majority directors / shareholders instruct you to do? As the accountant you’d take instruction from that majority. If he throws his toys out of the boardroom, who’s to stay he wouldnt sack you?

I think that's a risk, not a conflict of interest. But otherwise I agree with you. It's a bit like acting for a family member. When the professional relationship breaks down, what happens to the family relationship?

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to johngroganjga
29th Jan 2019 09:51

Would you agree that it's a conflict of interest if the prospect of that scenario influences the OP's professional opinion?

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29th Jan 2019 09:39

There is no initial conflict of interest - however there is the very real danger of mission creep and getting dragged into doing more.

Inter family politics is also usually never far away in these scenarios.

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29th Jan 2019 10:06

I agree with John that it's a risk but, given the nature of the assignment, I would consider that the risk is vanishingly small.

This task is about establishing an accounting system. It should produce the same result as the existing system. There's no scope for tax savings.

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