ACCA Code of Ethics

Going forward, please can you ask different questions on separate posts (otherwise I may overlook to answer all of them). Please also cite a more specific source of a Q (if known) – this is taken from D14 (Q2).

@jagmeet said:
Sir examples of voluntary disclosure by the auditors are;
1.Where disclosure is made to non governmental bodies
2.where disclosure is made to the public interest

Sir why would an auditor make these voluntary disclosures kindly giving and example on number1 and sir you said they dont have the legal background to make a disclosure to public interest .This was a past paper question

As indicated in the published answer the auditor would be obliged to report knowledge or suspicions of 1. money laundering (see page 19 of the notes) and, similarly, 4. terrorist offences – so by a process of elimination the other two must be voluntary.

Confidentiality normally prevents an auditor making any disclosure unless it is a duty (i.e. mandatory). At this level (AA) you would not be examined on details (it is much more relevant to AAA). Disclosure “in the public interest” is not a requirement – it is a very sensitive area because it conflicts with the fundamental principle of confidentiality.

What is an NGO is assumed knowledge of AB(F1) – they generally promote particular causes (e.g. human rights, the environment). If an auditor discovered that an audit client was exploiting child labour or causing harm to the environment – if contrary to law there may be a duty to report it (this would be to a relevant government authority) – but if not contrary to law in the client’s jurisdiction, any disclosure to raise awareness of it (e.g. to an NGO) would be voluntary.