Answer Happy

Briefly identify and explain the ethical considerations and
legislative requirements you as a registered tax agent would have
to take into account when preparing clients’ tax returns,
including:
a) Pete has
decided to sell his business which is a mobile pie van – Pete’s
Perfect Pies. As his accountant you have assisted him in the
preparation of financial statements for the sale of the business.
Another client of yours Helen has seen the advertisement of the
business for sale. She contacted the selling agent and has been
provided with the specially prepared Profit and Loss
Statements for the past 2 years.
Helen is not aware that you are Pete’s
accountant and she approaches you to review the figures she has
been given and to advise her on whether Pete’s Perfect Pies is a
good business investment for her.
Explain why this situation would
represent a conflict of interest under the code of professional
conduct for you as the accountant for both parties. What
action would you take to ensure that you remained compliant with
the legislative requirements?