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ACCA Strategic Professional · Strategic Business Reporting (International) · Professional and ethical behaviour in corporate reporting

Lindiwe, an ACCA member employed by Hartwell plc, knows of a probable breach of financial reporting law by management. She wishes to make a protected disclosure to a regulator. Which statement best reflects the confidentiality principle?

Confidentiality is not absolute. Disclosure may be appropriate when required by law, or when permitted by law and justified by professional duty or the public interest, after weighing the consequences. It does not need employer consent, and simple disagreement with management is insufficient.

  1. AConfidentiality prohibits disclosure in all circumstances
  2. BDisclosure is permitted only if the employer consents in writing
  3. CDisclosure may be appropriate where it is required by law or permitted by law and authorised by professional duty or the public interest, after considering the consequencesCorrect
  4. DDisclosure is permitted whenever the accountant dislikes a management decision

Explanation

The Code allows disclosure when legally required, or when legally permitted and in the public interest or to comply with professional duties, after weighing the likely consequences. Employer consent is not required, and mere disagreement is not a basis.

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