ACCA Strategic Professional · Advanced Audit and Assurance (International) · Advertising, tendering, and obtaining professional work and fees
Kestrel & Partners wishes to publicise that it recently won the audit of Zenith Bank, a listed client, using a press release naming the client and describing the tender fee. The client has not been asked. What is the most appropriate view?
The press release is inappropriate. Naming the client's fee and tender details discloses confidential information without consent, breaching the confidentiality principle. Marketing must also be honest and professional, and no rule requires firms to publicise new appointments.
- AAcceptable, as the appointment is public information in the annual report anyway
- BAcceptable if the fee is stated to show competitiveness
- CInappropriate, because confidential client information such as the fee should not be disclosed without client consent, and marketing must remain honest and not breach confidentialityCorrect
- DRequired, because the Code obliges firms to publish all new appointments
Explanation
The fundamental principle of confidentiality applies to marketing. Fee and tender details are client information not to be disclosed without consent or a legal or professional right or duty. Public appointment does not release fee details, and there is no duty to publish appointments.
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