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CA Final · Financial Reporting · Professional and Ethical Duty of a Chartered Accountant

CA Firm Sharma & Co. is selected for a quality review by the Institute. The reviewer asks to examine working papers containing confidential details of Anand Pharma Ltd. The client has not given consent to disclose. Under the Code, what is the correct position?

The firm may disclose the information. The Code recognises a professional duty or right to disclose confidential information to comply with peer review, quality review or other reviews by the Institute, when not prohibited by law, so client consent is not required.

  1. AThe firm may disclose only if Anand Pharma gives written consent
  2. BThe firm may not disclose because the duty of confidentiality is absolute
  3. CThe firm may disclose only after the engagement with Anand Pharma has ended
  4. DThe firm may disclose, as complying with peer review or quality review requirements of the Institute is a professional duty or right, when not prohibited by lawCorrect

Explanation

The Code lists compliance with peer review, quality review or other reviews by the Institute as a circumstance where there is a professional duty or right to disclose, provided law or regulation does not prohibit it. Client consent is therefore not a precondition. Saying confidentiality is absolute ignores the stated exceptions.

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