ETHICAL Conflict Resolution

With the word “ethical”, conflicts must be resolved professionally and in accordance with the underlying
principles. More so, it involves steps towards a careful conflict resolution process that can be done
FORMALLY or INFORMALLY.

The “Why”

1. There are instances that a professional accountant is required to resolve conflict complying with the
fundamental principles hence ethical conflict resolution is necessary.

Factors relevant to the resolution process (treated either individually or together with the rest of the
factors)

1. Relevant Facts

2. Ethical issues involved

3. Fundamental principles related to the matter in question

4. Established internal procedures

5. Alternative courses of action

The “Hows”

General Rule: Professional accountants shall determine the proper course of action, weighing the
consequences of each possible action and if the matter remains unresolved then he/she may wish to
consult with other appropriate persons for help in obtaining resolution such that when:

a. )Where a matter involves conflict WITH or WITHIN an organization

Professional accountant shall consult with those charged with the governance of the organization such
as the board of directors or audit committee.

b. If a significant conflict cannot be resolved

Professional accountant may consider obtaining professional advice from the relevant professional body
or from legal advisors WITHOUT breaching confidentiality through dealings done in an anonymous basis
or protection of legal privilege if he/she opts to obtain advice from legal advisors.