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

CA Sunil Rao faces a disciplinary inquiry by the Institute concerning his audit of Bharat Cement Ltd. He wants to use client information to respond to the inquiry. The client has not given permission. Under the ICAI Code of Ethics (13th edition), what is the correct position?

Sunil may disclose or use the confidential information to respond to the Institute's inquiry or investigation, provided this is not prohibited by law or regulation. The Code treats this as a professional duty or right, so neither client authorisation nor a court order is a precondition.

  1. AHe cannot use any client information without the client's written authorisation
  2. BHe may disclose or use it only if the client later ratifies the disclosure
  3. CHe may use it only after a court order has been obtained
  4. DHe may disclose or use it to respond to an inquiry or investigation by the Institute, where this is not prohibited by law or regulationCorrect

Explanation

The Code recognises a professional duty or right to disclose or use confidential information, when not prohibited by law or regulation, to respond to an inquiry or investigation by the Institute or other regulator. Client authorisation is a separate exception and is not the only route. A court order is not a precondition for responding to the Institute.

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