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in which case we can share information to others i knew about public intrest.
what about police and tax department .. if the client is involve in criminal activity and police ask as does we have right to give the information or …
we should only provide information if court demands kindly clearify me about this situation for further detail look at Q15 of BPP kit.(If posing a question to be answered by a tutor please remember to use the tutor forum.)
This is an extremely complex area although the section on confidentiality in the ACCA Code of Ethics and Conduct is less than two pages.
The rule is NOT to disclose confidential information without:
– proper and specific authority or
– unless there is a legal or professional right or duty to disclose.
You have to bear in mind that confidentiality serves the public interest (because it
facilitates the free flow of information between client and auditor) – so to breach this duty is very serious.
The Code goes on to say that disclosure is required by law (i.e. legal duty) , for example:
(i) Production of documents or other provision of evidence in the course of legal
proceedings; or
(ii) To the appropriate public authorities of infringements of the law that come to light.
So (ii) says yes the auditor can report matters to the police and/or tax authority if they are the “appropriate public authority” in respect of the matter. And this is quite separate from if a court demands it (which is (i)).
Neither of the above are disclosure “in the public interest” – a term which essentially describes the auditor “whistleblowing” on a client.
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