Where a Conflict of Interest Arises for an Accountant So

question 8

Multiple Choice

Where a conflict of interest arises for an accountant so that safeguarding the interest of one client may cause harm to another client,it is generally accepted that rules of professional ethical conduct require that:

• A) the accountant should not continue to advise both clients
• B) the accountant should ensure that information about either client is not made available by anyone to the other client
• C) the accountant should ensure that information about either client is not made available by anyone to the client who might be harmed by the information
• D) the accountant should not continue to advise either client

---

Definitions:

State Agency

An organization or body created by the government to carry out specific functions on a state level.

Chattel Paper

A writing that indicates both a monetary obligation and a security interest in specific goods.

Monetary Obligation

A legal requirement to pay a certain amount of money, arising from contractual agreements, fines, or other legal instruments.

Security Interest

A legal claim or right granted over assets as security for the repayment of a debt or performance of some obligation.