ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
Tamsin, an accountant, has analysed an ethical dilemma, considered the stakeholders and decided that disclosing the matter outside the organisation may be justified. Internal escalation to senior management and those charged with governance has failed to resolve it. Which of the following best describes the position on confidentiality?
Confidentiality can be overridden where law or professional duty requires or permits disclosure, or the public interest justifies it. Because of the risks involved, the accountant should take legal advice first. Disclosure is neither automatic after failed escalation nor dependent on the wrongdoer's consent.
- AConfidentiality is absolute and can never be overridden
- BDisclosure is allowed only with the consent of the person who caused the problem
- CDisclosure may be permitted or required where there is a legal duty or the public interest, but legal advice should be considered firstCorrect
- DDisclosure is always required once internal escalation fails
Explanation
The duty of confidentiality is not absolute; disclosure may be permitted or required by law or professional duty, or where the public interest is served. Because of the risks, obtaining legal advice first is prudent. It is not automatic after failed escalation, and consent of the wrongdoer is not required.
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