Select Committee on Treasury Appendices to the Minutes of Evidence


Annex B

Examples of Possible Conflicts of Interest

(See paragraph 18 of the annex)

  1.  A partner of a firm of accountants sits on the Management Board of a body which is seeking tenders for its external audit appointment. Board members should also be guided by the provisions on conflicts of interest in Guidance on Codes of Practice for Board Members of Public Bodies issued by the Cabinet Office in January 1997.

  2.  A firm which acts as the external auditor of a body expresses an interest in another assignment within the body (see also the comments on consultancy work at paragraphs 21 to 23 of the main text).

  3.  A firm which expresses an interest in tendering for the external audit appointment of a body already seconds some of its employees to that body (for example as investigative accountants).

  4.  A firm which expresses an interest in tendering for the external audit appointment of a body already undertakes accountancy work for the body, eg writing up the books and involvement in the day-to-day operations.



 
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