Participating in a hiring panel where a close friend is a candidate represents a direct and significant conflict of interest. The ASET Code of Ethics requires regulated members to act with absolute integrity and to avoid conflicts of interest, but crucially adds: "where such conflict arises, fully disclose the circumstances without delay to the employer or client." Keeping the relationship a secret (Option B) is highly unethical and fraudulent, as it deprives the employer of a fair, unbiased hiring process. Asking the friend to drop out (Option C) is inappropriate and penalizes the friend unnecessarily. While declining to participate (Option D) is an eventual outcome, the immediate and most correct first step is to fully and transparently disclose the friendship to the employer (the HR department or hiring manager) prior to the interviews. Once disclosed, the employer has all the facts and can appropriately decide how to proceed—which almost always involves removing the member from that specific interview panel to maintain the integrity of the hiring process.