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ACCA Strategic Professional · Strategic Business Leader · Professionalism, ethical codes and the public interest

Marek is finance director of Brightwave Ltd. He discovers that the CFO, his line manager, has been inflating revenue. He has raised it internally, but the board has taken no action and the issue remains unresolved. Marek has sought advice from his professional body. Which statement best reflects his position regarding confidentiality and further action?

Marek may be able to disclose, because the duty of confidentiality is overridden where law requires or permits disclosure or the public interest demands it. He should take legal advice and consider reporting to an appropriate authority, not the press, after internal escalation has failed.

  1. AConfidentiality is absolute, so he must stay silent and may only resign
  2. BHe must immediately publicise the matter in the press
  3. CConfidentiality can be overridden where disclosure is permitted or required by law or in the public interest, so he should take legal advice and consider disclosure to an appropriate authorityCorrect
  4. DHe should delegate the matter to a junior colleague to avoid personal liability

Explanation

Confidentiality is not absolute: disclosure may be permitted or required where law requires it or the public interest warrants it, such as ongoing fraud. Before disclosing, he should seek legal advice, consider the proper authority and document his actions. Press disclosure is disproportionate and silence ignores public interest duties.

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