Explain the term 'conflict of interest' regarding audit engagement as per the Company Secretaries Auditing Standard (CSAS)-1.

Conflict of Interest as per Company Secretaries Auditing Standard (CSAS-1) The Auditor shall not have any substantial conflict of interest with the Auditee. Any conflict of interest, other than substantial conflict of interest, must be disclosed by the Auditor before accepting the Audit Engagement or as soon as the Auditor becomes aware of the same, as the case may be. Conflict of Interest as per the CSAS means: Ownership: Where the Auditor singly or along with partners, spouse, parent, sibling, and child of such person or of the spouse, any of whom is either dependent financially on such person, holds more than 2% in the paid up share capital or shares of nominal value of ₹50,000/-, whichever is lower or more than 2% voting power, as the case may be, the same shall be considered as substantial conflict of interest. Financial Interest: Where the Auditor is indebted to the Auditee for an amount of ₹5 lakh rupees or more. However, financial indebtedness arising out of ordinary course of business will not constitute conflict of interest. Indebtedness that may seriously impair the independence of the Auditor shall be considered as substantial conflict of interest. Past Employment Relationship: Where an Auditor was in employment of the Auditee, its holding or subsidiary company and 2 (two) years have not lapsed from the date of cessation of employment, the same shall be considered as substantial conflict of interest.