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ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas

An accountant has exhausted internal channels about a serious fraud and is considering external disclosure. Which factor is most relevant when deciding whether disclosure to a third party is ethically appropriate under the Code's guidance on breaching confidentiality?

The key consideration is whether the facts are substantiated, whether the recipient and method of disclosure are appropriate, and what harm disclosure might cause to others. Personal benefit, management embarrassment or media interest are not proper criteria for breaching confidentiality.

  1. AWhether the accountant would personally gain from the disclosure
  2. BWhether the disclosure would embarrass senior management
  3. CWhether all the relevant information is substantiated and the proposed type of communication and recipient are appropriate, and whether any person could be harmed by the disclosureCorrect
  4. DWhether the media is interested in the story

Explanation

The Code requires consideration of whether the information is substantiated, the appropriateness of the recipient and type of communication, and the likely consequences for others. Personal gain, management embarrassment and media interest are not valid ethical criteria and could indicate improper motives.

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