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Hot Potato: this month's dilemma.

Document Cited in Related
Vincent
AuthorBarman, Tanya
PositionUpdate

I am the FD for a privately owned company in the fashion industry. The shareholders are now selling the business and I have concerns about the stock valuation that has been established. This has been judged by the MD on the basis of year-end accounts, in respect of which I have been asked not to include information about slow-moving stock that is more than nine months old. The MD, who is the primary shareholder, feels that it is not necessary to log this, despite me raising this in writing. I am now considering contacting the auditors.

Our response:

You are under pressure to act in a way that is threatening your compliance with the fundamental principles of integrity (Section 110) and objectivity (Section 120). Having already raised the issue with the MD you are right to discuss the matter with the auditors, and perhaps jointly meet again with the MD to further discuss the matter.

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Section 310 outlines potential conflicts and...

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