Page 76 - CFF

Alternative dispute resolution (ADR)

• Process in which opposing parties are brought

together to help resolve their disputes through the

help of a neutral third party

• Tends to be simpler than court processes

• Can be binding or nonbinding

• Two types of ADR

– Arbitration — Disputes are submitted to a neutral third party for
resolution. Can be administered or non-administered.

– Mediation — Structured negotiations that are more informal than
arbitration.

8 © 2019 Association of International Certified Professional Accountants. All rights reserved.