ExpertMedium2 marksMultiple Choice
ACCA · Question 29 · Syllabus F: Professional ethics
An accountant is considering disclosing confidential client information. Under the IFAC Code of Ethics, in which TWO of the following situations is an accountant permitted or required to disclose confidential information? (Select TWO)
An accountant is considering disclosing confidential client information. Under the IFAC Code of Ethics, in which TWO of the following situations is an accountant permitted or required to disclose confidential information? (Select TWO)
Answer options:
A.
When disclosure is required by law (e.g., reporting suspected money laundering).
B.
When the information would be highly beneficial to a different client in the same industry.
C.
When there is a professional duty or right to disclose, and it is not prohibited by law.
D.
When the accountant has left the firm and is using the information at a new job.
How to approach this question
Identify the exceptions to the rule of confidentiality. Law and professional duty are the main exceptions.
Full Answer
Confidentiality is a fundamental principle, but it has exceptions. Disclosure is permitted/required when: 1) Permitted by law and authorized by the client. 2) Required by law (e.g., anti-money laundering). 3) There is a professional duty or right to disclose (e.g., quality reviews by a professional body).
Common mistakes
Believing confidentiality is absolute. Legal requirements (like reporting terrorism or money laundering) always override client confidentiality.
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