Your firm, Earnest, Devoid and Couples, has been the auditor for many years of Barley Gordon Ltd, which operates a large chain of electrical goods retailers across Australia and New Zealand. The electrical goods retailing business is dominated by two major players in the market, Barley's, as they are affectionately known by the buying public, and Duck Guys Ltd, or Duckies as they are known.

The market is very competitive with both companies engaged in significant television advertising, price competition and other marketing activities in order to gain market share, largely by attracting the customers from the other company.

You have recently been approached by the CFO of Duckies to carry out its year-end audit. Duckies was attracted to your firm because of your extensive experience in the industry.

Required

Explain the safeguards that could be put in place in relation to the conflict of interest arising from the above.