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ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas

Priya, a newly qualified accountant, has just moved from an audit firm to a manufacturing company. Her new finance director asks her to describe the pricing strategy of a competitor, which Priya learned in confidence while auditing that competitor. What should Priya do?

Priya should decline to disclose it. The fundamental principle of confidentiality continues after she leaves the audit firm, so she must not reveal or use the competitor's information, even partially or in return for a promise of secrecy.

  1. AShare only the headline figures, since the detail is not needed
  2. BShare the information, because she no longer works for the audit firm
  3. CDecline to disclose the information, as the duty of confidentiality continues after the relationship has endedCorrect
  4. DShare the information if the finance director promises to keep it secret

Explanation

The duty of confidentiality continues after the end of the professional relationship or change of employment. Partial disclosure is still disclosure, and a promise of secrecy from the recipient does not give Priya the right to pass on the information.

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