If a CPA discovers a conflict of interest due to a client relationship, what should they do?

When a CPA discovers a conflict of interest arising from a client relationship, the appropriate course of action is to notify the client and discuss alternatives. This response ensures transparency and upholds the ethical standards expected of CPAs.

Conflicts of interest can undermine the trust essential in a client-accountant relationship, and addressing them directly is crucial for maintaining professionalism and integrity. By informing the client, the CPA allows for a candid dialogue to explore potential solutions, such as altering the scope of services, engaging a different team member, or even reassessing the continuation of the engagement.

This approach aligns with the ethical guidelines that emphasize the importance of client communication and the necessity of prioritizing the best interests of the client while managing personal and professional integrity. Discussing alternatives aids in finding a resolution that respects both the CPA's ethical obligations and the client’s needs, thus reinforcing a professional relationship based on honesty and accountability.