ACCA BT · Chapter 14 · Question 3 of 11
An accountant tells a friend at a dinner party about the financial difficulties of a client, naming the client. Which fundamental principle has been breached?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Confidentiality
Explanation
Confidentiality requires accountants to respect the confidentiality of information acquired through professional relationships and not disclose it without proper authority or a legal or professional duty to do so. Discussing a client's finances socially is a clear breach. The facts do not involve bias, dishonesty or lack of skill.
More Professional ethics in accounting and business MCQs
- Q5An accountant holds a large number of shares in a client company whose financial statements she is reviewing. Which type of threat to her…
- Q6A firm's audit team includes a manager who prepared the client's accounting records earlier in the year before transferring to the audit…
- Q7A finance director tells a junior accountant that he will lose his job unless he records a dubious sales transaction before the year end…
- Q8An accountant has worked closely with the same client's finance director for many years and they now holiday together. Which threat is…
- Q9Which of the following is an example of a safeguard created by the profession, legislation or regulation, rather than by the work…