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CA Final · Financial Reporting · Professional and Ethical Duty of a Chartered Accountant

The Ethical Standards Board of ICAI inquires into a complaint against CA Sunita Rao. To respond to the inquiry, she needs to produce certain working papers of her client, Bhavani Foods Ltd., that contain confidential information. The client has not given consent, and no law prohibits the disclosure. Under the ICAI Code of Ethics (13th edition), she may:

She may disclose the confidential information needed to respond to the inquiry. The Code of Ethics recognises a professional duty or right to disclose in order to respond to an inquiry or investigation by the Institute or another regulator, when the disclosure is not prohibited by law. Client consent is not required.

  1. ADisclose only if Bhavani Foods Ltd. consents in writing
  2. BNot disclose, because confidentiality is absolute
  3. CDisclose to the extent necessary, because there is a professional duty or right to respond to an inquiry or investigation by the Institute or other regulator, when not prohibited by lawCorrect
  4. DDisclose freely to the press to defend her reputation

Explanation

The Code lists responding to an inquiry or investigation by the Institute or other regulator as a professional duty or right to disclose, when not prohibited by law. Client consent is therefore not a precondition here. Confidentiality is not absolute, and disclosing to the press is not among the permitted circumstances.

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