CONFLICT CHECK FORMS
(mandatory to use applicable form - summary or full conflict check)
It is a mandatory requirement to perform a conflict check to identify if there are any potential independence risks related to services already provided to a prospective client by a PKF firm. Network independence conflict checks are performed before a new client engagement or relationship is accepted.
There are two and it is mandatory to use at least one of the two forms: i) Summary Conflict Check – can be used for prospective engagements with entities that are sole traders or unlisted (non-publicly traded) entities that are stand-alone and not part of a wider group of entities. ii) Full Conflict Check – which is used for all other types of entities, other than those to which the Summary Conflict Check applies. For example, this can include entities that are publicly traded (listed), entities that are part of a group of entities, or entities which have activities in more than one country.
Other Conflict Checking resources:
Country checking form
(mandatory for use where applicable)
The Country checking form can be used at the pre-acceptance stage for engagements in all service lines. It is used where a firm with an engagement opportunity has reason to believe that there are relevant entities or operations of a potential client where firms in the PKF network might provide services. Inquiries with the potential client might not have produced complete information and there is a risk that without a direct approach to PKF member firms within a particular country, that any services that have or are currently being provided may not be identified.
Template to request relevant information on potential client and its group, from management
(optional for use)
This template can be used to obtain relevant information from a potential audit client which supports the conflict checking process. The template prompts the potential client to provide information on other relevant entities that are connected to the company and details on services provided to those entities by firms in the PKF network.
PRE-APPROVAL REQUEST FORM
(mandatory for use to obtain preapproval from another PKF member firm)
This form is used at the pre-acceptance stage to obtain approval before an engagement is accepted where a potential conflict of interest has been identified. Pre-approval is required from the engagement partner with responsibility for the existing client with which the prospective engagement may be in conflict.
Network Interest Entity Assessment form
(mandatory for use)
This form is used to assess if a newly accepted client meets the PKF network definition of a Network Interest Entity, and needs to be recorded on TREND.
