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

CA Neha Bansal's firm is subject to a quality review by the Institute, and the reviewers ask to see certain client working papers containing confidential information. Her junior suggests refusing because the clients have not consented. Under the ICAI Code of Ethics (13th edition), what is the appropriate view?

She may disclose the working papers to the reviewers. The Code treats complying with peer review, quality review or other Institute review as a professional duty or right to disclose confidential information, provided law or regulation does not prohibit it. Client consent is not the only permitted ground.

  1. ARefuse, since only client consent can justify disclosure
  2. BDisclose only after informing the press and clients
  3. CDisclose, because there is a professional duty or right to disclose to comply with peer review, quality review or other review by the Institute, when not prohibited by law or regulationCorrect
  4. DDisclose only to the extent the information is already publicly available

Explanation

The Code recognises a professional duty or right to disclose or use confidential information to comply with peer review, quality review or such other review by the Institute, when not prohibited by law or regulation. Client consent is therefore not the only basis. Public availability is not a condition and informing the press is irrelevant.

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