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

CA Sunita Rao's firm is served with a court order directing production of certain working papers of a client, Dev Steels Ltd, in legal proceedings. The client objects to disclosure. Under the ICAI Code of Ethics (13th edition), what is the position?

Disclosure may be made. The Code recognises that a chartered accountant may be required by law to disclose confidential information, for example by producing documents or providing evidence in legal proceedings, so the client's objection does not make the disclosure a breach.

  1. ADisclosure is barred unless the client consents in writing
  2. BDisclosure is permitted only to the extent of summary figures
  3. CDisclosure is a breach, since confidentiality overrides legal proceedings
  4. DDisclosure may be made because the Code recognises that production of documents in legal proceedings may be required by lawCorrect

Explanation

The Code lists, among circumstances where disclosure is required by law, the production of documents or other provision of evidence in the course of legal proceedings. Client consent is only one of the exceptions, so the first option is wrong. Confidentiality does not override a legal requirement.

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