ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
Under the ACCA Code of Ethics and Conduct, which of the following is a situation in which an accountant may disclose confidential client information without the client's consent?
An accountant may disclose confidential information without consent where the law requires it, such as reporting suspected money laundering. Commercial advantage, informal requests from friends, or limited internal knowledge do not release the accountant from the duty of confidentiality.
- AWhen disclosure would help the accountant win new work from another client
- BWhen disclosure is required by law, for example to report suspected money laundering to the authoritiesCorrect
- CWhen a friend of the accountant asks for the information informally
- DWhen the information is already known to some employees of the client
Explanation
Confidentiality can be overridden where disclosure is required by law, such as a legal duty to report suspected money laundering. Using information to win work or to help friends is a breach. Information being known to some staff does not make it public or release the accountant from the duty.
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