Once you identify a potential conflict of interest which questions should you ask yourself next.

Once you have identified a potential conflict of interest, the question you should ask yourself next is: Have I disclosed the matter to the appropriate parties?

A conflict of interest can be defined as a situation in which the aims, objectives, and concerns of two (2) or more parties do not align or are completely incompatible. Thus, a conflict of interest leads to an unreliable and compromised decision-making process.

The first step in the conflict of interest is identifying the purpose of the conflict and the last step is the management of this conflict by an appropriate party or authority.

Hence, after the identification of potential conflict of interest, the question you should ask yourself next is; have I disclosed the matter to the appropriate parties?

In conclusion, a potential conflict of interest should be disclosed to the appropriate parties as soon as it is identified.

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Answer:

Are threats to compliance with the code at an acceptable level?

Explanation:

According to AICPA Professional Code of Conduct: "When an actual conflict of interest has been identified, the member should evaluate the significance of the threat created by the conflict of interest to determine if the threat is at an acceptable level."

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