Confidentiality

ACCA F8考试： Confidentiality

Confidentiality has two aspects: improper disclosure and improper use.

1 Improper Disclosure

Information acquired in the course of professional work should not be disclosed to third parties (including other clients for use on other assignments or with another employer) without first obtaining the permission of the client/employer.

Confidentiality is an implied term of a contract between an auditor and client, employee and employer. Therefore it cannot be disclosed against a client's/employer's wishes. It is in the public interest that this professional duty of confidence exists.

Auditors/employees are normally under no legal obligation to disclose defaults or unlawful acts (or suspicions thereof) to anyone other than management, unless specifically required do so to a third party by law.

1.1 Exceptions

There is a statutory duty to disclose without first obtaining permission to do so, for example:

under obligation of a court order; or disclosure to the appropriate public authorities of infringements of the law (where required to do so by that law).

The firm has a professional duty or right to disclose (when not prohibited by law), for example:

to comply with quality-control reviews of regulatory bodies such as ACCA (usually referred to in the letter of engagement);

to respond to an inquiry or investigation by ACCA or other regulatory body (again, usually covered within a letter of engagement) or other witness summons; or to comply with technical standards and ethics requirements.

Where there is a right (as opposed to a duty), disclosure should only be made in pursuit of a public duty or professional obligation.

2 Improper Use of Information

When a professional accountant changes firm or employment he should distinguish between:

experience gained in the previous firm or employment; and confidential information and documents acquired there.

A member should not deal in the shares of a company with which he has a professional association, as it might make it appear that he was turning information obtained in his professional capacity to his own advantage (e.g. via insider information and trading).