Skip to content

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

CA Meera, a practising Chartered Accountant, completed an engagement for Veda Textiles Ltd. and the professional relationship has ended. A year later, a competitor offers her a fee for insights drawn from Veda's non-public costing data she held during the engagement. Veda has not authorised any disclosure, and no law or professional duty requires it. Under the ICAI Code of Ethics (confidentiality), what is the position?

She must not use or disclose the information. The Code bars use or disclosure of confidential information even after the professional relationship has ended, and no exception applies here because the client has not authorised disclosure and no law or professional duty requires it.

  1. AShe may use the information because the engagement has ended
  2. BShe may use the information if she removes the client's name
  3. CShe must not use or disclose the information even after the relationship has endedCorrect
  4. DShe may disclose it if the competitor agrees to keep it confidential

Explanation

The Code states that a chartered accountant shall not use or disclose any confidential information acquired or received in the course of a professional or business relationship after that relationship has ended. No exception applies, as there is no legal duty and no client authorisation. The option about the engagement ending is wrong because the duty survives it.

Did you get it right without looking?

One question tells you little. A timed set on Professional and Ethical Duty of a Chartered Accountant shows your real accuracy, how long you take and where you lose marks.

Practise Professional and Ethical Duty of a Chartered AccountantFree diagnostic mock

More Professional and Ethical Duty of a Chartered Accountant questions