ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
Under the ACCA Code of Ethics and Conduct, in which situation may a professional accountant disclose confidential client information to a third party WITHOUT the client's consent?
Disclosure without consent is permitted when required by law, such as reporting suspected money laundering to the authorities. Confidentiality is not absolute, but it can be overridden only for legal or professional duties, not for commercial advantage, publicity or pressure over unpaid fees.
- AWhen disclosure would help the accountant win a new engagement from a competitor
- BWhen the accountant considers the information might interest the local press
- CWhen disclosure is required by law, such as reporting suspected money laundering to the relevant authorityCorrect
- DWhen the client's fees are unpaid and the accountant wants to pressure the client
Explanation
Confidentiality may be overridden where disclosure is permitted by law and authorised by the client, required by law, or where there is a professional duty or right to disclose (for example in legal proceedings or to comply with professional standards). Reporting suspected money laundering is a legal requirement. The other options serve the accountant's own interests and are improper.
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