Conflict of Interest in Your Practice Is More Dangerous Than You Think
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Most Business Accountants in Practice don't get into this profession to play referee between competing interests. You’re here to serve your clients, stay compliant, and run a sustainable business. But what happens when your loyalty is pulled in two directions? Or when your independence is quietly compromised by something as simple as a referral fee or a family connection? That’s where the real risk starts—and if you’re not managing conflict of interest properly, it could cost you your clients, your licence, and your reputation.
Let’s get real: this isn’t just a checkbox for your policies folder. It’s a daily risk that can creep into your practice without warning.
What Is a Conflict of Interest (And Why It’s Not Just a Legal Issue)
A conflict of interest arises when your ability to remain objective is—or could reasonably be perceived to be—compromised. That could mean you're acting for both the buyer and seller in a transaction. Or maybe you’re providing financial statements to a business run by your cousin, while also handling their tax returns. Or perhaps you’re getting referral fees from another service provider but haven’t disclosed it to your client.
It doesn’t have to be illegal to be unethical. And in our world, perception is everything.
Why CIBA Members Need to Take This Seriously
As a CIBA member, you're bound by the IESBA Code of Ethics, which isn’t just a dusty document to quote when you’re in trouble. It requires you to:
Identify threats to the fundamental principles (especially objectivity and integrity)
Evaluate how serious those threats are
Address them—either with safeguards or by walking away from the engagement
You’re not just an accountant. You’re a professional. That means putting the client’s interests (and the public interest) above your own when needed. If you can’t be objective, you shouldn’t be on the job.
How Conflicts Show Up in Real Life
Think it won’t happen to you? Here are a few examples we see every day in small practices:
You prepare tax returns for both parties in a divorce. Even if they agree now, when things turn nasty, you're in the middle.
You help two clients bid for the same tender. They think you’re working for them exclusively. Are you?
You refer your clients to a broker who pays you a kickback. Did you disclose that?
You sign off on a financial review for a company where your brother-in-law is the CFO. Independent review? Really?
What You’re Required to Do (No, a Verbal Disclosure Isn’t Enough)
Managing conflict of interest isn’t optional. Here’s what CIBA and IESBA expect from you:
Have a documented policy in your practice—yes, even if you're a solo practitioner.
Identify potential conflicts before taking on a new client or engagement.
Disclose all conflicts to all relevant parties—in writing.
Get informed consent from the parties involved. Not just a “thumbs up” over coffee. Formal, signed-off consent.
Put safeguards in place, like assigning different team members to different clients or creating physical or digital information barriers.
Walk away if the threat to objectivity is too high or can’t be managed.
And don’t forget to document everything. If there’s ever a complaint, “I told them” won’t hold up. Your working papers must show how you identified, disclosed, and addressed the conflict.
Why It’s a Business Risk—Not Just a Compliance Issue
If you ignore conflict of interest, here’s what you’re putting on the line:
Your professional reputation
Your practice licence
Disciplinary action by CIBA
Legal liability—yes, clients can sue if they believe they got biased advice
Trust—which, once lost, is almost impossible to recover
Clients may forgive a small mistake. But if they suspect you were serving someone else’s interest above theirs? That’s game over.
Turning Conflict Management Into a Business Strength
Here’s the good news: managing conflict of interest properly doesn’t just keep you safe. It also sets you apart. When clients see that you:
Have clear, ethical processes
Disclose issues openly
Walk away from work that doesn’t feel right
…they trust you more. And guess what? Trust is billable.
You can even turn it into a service: offering conflict checks and ethical advisory to clients navigating joint ventures, restructuring, or family business disputes. It’s another way to monetise your expertise while keeping your practice above reproach.
A Quick Win: Add a Conflict Check to Your Onboarding Process
Want a low-effort way to raise your game? Add a simple conflict-of-interest screening form to every new client file. Ask:
Do I (or my staff) have a personal or financial connection to this client?
Do I serve anyone else who might be affected by this engagement?
Could this work compromise my independence?
If yes—what do I need to disclose?
Build this into your workflow, and you’ll avoid most problems before they start.
The Bottom Line
Managing conflict of interest isn’t about ticking a compliance box. It’s about protecting your practice, upholding your professional integrity, and building a business that clients trust and respect.
You’re not just an accountant. You’re the person clients call when the stakes are high. Make sure your house is in order—before you give advice to others.
Join CIBA for a CPD on Ethics in Tax Practices here
Tax season doesn’t excuse ethical shortcuts. And SARS is paying attention.
If you’re advising clients on tax and not 100% confident about where the ethical line sits—this session is for you. We're breaking down what the IESBA Code really expects from you, and what SARS expects too.
📅 28 May 2025 | 🕘 09:00–12:00 | 💻 Live CPD | 🧠 3 Units | Free for CIBA Channel 2 holders | R345 incl. VAT for everyone else
Join veteran ethics consultant Saleem Kharwa as we unpack:
✅ How to handle grey areas in tax planning without crossing the line
✅ What “integrity” and “objectivity” look like when your client wants to push the limits
✅ SARS's ethical expectations—and how to stay on the right side of compliance
✅ Practical examples of what happens when ethics in tax go wrong
This isn’t fluff. It’s your credibility, your licence—and your business—on the line.
🔗 Book your seat here now
Let your clients sleep well at night, knowing you’ve got this covered.
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