Alex, a prospective client called Yavorsky, Nick, and Associates, a full-service accounting firm where you work, to obtain a quote for bookkeeping services. During your phone call, Alex told you that he was cash-poor, but had a rapidly growing business. You sensed that Alex would not be willing to pay your firms comparatively high fees. As a result, you told the client that you would you be willing to perform services for Alex from your home during the evening for fees equal to 75% of what your employer would have charged. Alex agreed.

a. Does this pose a conflict of interest? b. What if you decided to perform services for Alex at a reduced rate, with the intention of luring Alex into becoming a client of Yavorsky, Nick, and Associates once his business grows? Do you still have a conflict of interest?