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ACCA Applied Knowledge · Business and Technology · The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession

A member learns confidential information about a client's plans during an engagement. In which situation would disclosure of that information be permitted under the ethical code?

Disclosure is permitted when it is required by law, such as a legal duty to report to a regulator. Satisfying a friend's curiosity, helping another client, or gaining personally from the information would breach the principle of confidentiality.

  1. AWhen a friend of the member asks out of interest
  2. BWhen the member wishes to help a new client in the same industry
  3. CWhen disclosure is required by law, for example to a regulator under a legal dutyCorrect
  4. DWhen the information would improve the member's own investment returns

Explanation

Confidentiality may be set aside where disclosure is permitted by the client, or required by law or professional duty. Personal curiosity, helping another client or personal gain are not valid reasons and would breach confidentiality.

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