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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Code of Ethics for Professional Accountants

Partner Raj has been told by a former audit client, Birch Ltd, that he must not discuss its affairs. Two years later at a dinner, a friend asks Raj about Birch's financial difficulties during the audit. Which statement about Raj's duty of confidentiality is correct under the IESBA Code?

Raj's duty of confidentiality continues after the relationship with Birch ends. The IESBA Code does not set a time limit and it covers all information acquired through the professional relationship, not only items marked confidential. He must not disclose it without proper authority or a legal or professional right or duty.

  1. AIt ended when the audit relationship ended
  2. BIt continues after the end of the relationship with the clientCorrect
  3. CIt continues only for twelve months after the relationship ends
  4. DIt applies only to information marked as confidential by the client

Explanation

The Code states that the duty of confidentiality continues even after the end of the relationship between the accountant and the client or employer. It is not time-limited and it covers information acquired through the relationship, not only items labelled confidential. Raj must not disclose Birch's information without proper authority.

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