ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas
Under the ACCA Code of Ethics and Conduct, which of the following statements about the fundamental principle of confidentiality is correct?
The correct statement is that an accountant must keep client information confidential unless there is a legal or professional right or duty to disclose it. The duty continues after the engagement ends, and information cannot be used for personal advantage or disclosed merely because no harm would result.
- AA professional accountant may use confidential information about a former client for personal advantage once the engagement has ended
- BA professional accountant must keep client information confidential unless there is a legal or professional right or duty to disclose itCorrect
- CA professional accountant may disclose confidential information to any third party who asks for it, if the client is not harmed
Explanation
Confidentiality means not disclosing information acquired through professional work without proper authority, unless there is a legal or professional right or duty to disclose. The duty continues after the relationship ends, so the first option is wrong. The third option is wrong because absence of harm does not give authority to disclose.
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